Baird/STR Hotel Stock Index rises 1.7% in May
The Baird/STR Hotel Stock Index rose 1.7% in May to a level of 3,232. Year to date through the first five months of 2020, the stock index was down 38.7%.
"Hotel stocks were relatively flat in May, which reflected underperformance during the first part of the month but a sharp reversal in the back half of May as the broader re-opening trade gained momentum and stock prices recovered,"said Michael Bellisario, senior hotel research analyst and director at Baird. "Industry data continues to be less bad on a sequential weekly basis, and investors' worst-case zero-occupancy scenarios, which included significant monthly cash burn rate assumptions, have not materialized as initially feared."
"As distancing measures have been eased and economies have reopened, we've seen a slow but steady improvement in U.S. performance each week since late April," said Amanda Hite, STR's president. "China is the furthest ahead in the curve, and Europe is just beginning to show the earliest signs of recovery. A sustained global rebound for the industry will likely only be reached once corporate group travel returns, but with a vaccine rollout timeline far off, and online meeting tools quite successful, the timing of new group demand is questionable right now."
May performance of the Baird/STR Hotel Stock Index fell behind the S&P 500 (+4.5%) but outperformed the MSCI US REIT Index (0.0%).
The Hotel Brand sub-index grew 2.3% from April to 5,638, while the Hotel REIT sub-index increased 0.1% to 784.
About the Baird/STR Hotel Stock Index and Sub-Indices
The Baird/STR Hotel Stock Index was set to equal 1,000 on 1 January 2000. Last cycle, the Index peaked at 3,178 on 5 July 2007. The Index's low point occurred on 6 March 2009 when it dropped to 573.
The Hotel Brand sub-index was set to equal 1,000 on 1 January 2000. Last cycle, the sub-index peaked at 3,407 on 5 July 2007. The sub-index's low point occurred on 6 March 2009 when it dropped to 722.
The Hotel REIT sub-index was set to equal 1,000 on 1 January 2000. Last cycle, the sub-index peaked at 2,555 on 2 February 2007. The sub-index's low point occurred on 5 March 2009 when it dropped to 298.
The Baird/STR Hotel Stock Index and sub-indices are available exclusively on www.HotelNewsNow.com. The indices are cobranded and were created by Robert W. Baird & Co. (Baird) and STR. The market-cap-weighted, price-only indices comprise 20 of the largest market-capitalization hotel companies publicly traded on a U.S. exchange and attempt to characterize the performance of hotel stocks. The Index and sub-indices are maintained by Baird and hosted on Hotel News Now, are not actively managed, and no direct investment can be made in them.
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.