Baird/STR Hotel Stock Index up 1.5% in September
"The hotel brands and hotel REITs both reversed their recent relative underperformance and outpaced their respective benchmarks in September," said Michael Bellisario, senior hotel research analyst and VP at Baird. "Investor expectations are now better aligned following second-quarter earnings, and the focus has begun to shift to 2019 outlooks. Also, recent positive economic data points suggest continued modest RevPAR growth, and rising interest rates provided a relative tailwind for the hotel REIT stocks during the month."
"It was nice to see investor sentiment more aligned with the recent run of record-breaking monthly demand," said Amanda Hite, STR's president and CEO. "The industry's streak of RevPAR growth was tested by hurricane-affected comparisons in September, but our forecast calls for continued performance growth through 2019."
The Baird/STR Hotel Stock Index outperformed the S&P 500 (+0.4%) and the MSCI US REIT Index (-3.2%).
The Hotel Brand sub-index increased 3.4% from August to 7,294, while the Hotel REIT sub-index fell 1.9% to 1,773.
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.
As of 30 September 2018, the companies that comprised the Baird/STR Hotel Stock Index included: Apple Hospitality REIT, Chesapeake Lodging Trust, Choice Hotels International, DiamondRock Hospitality Company, Extended Stay America, Hilton Inc., Hospitality Properties Trust, Host Hotels & Resorts, Hyatt Hotels, InterContinental Hotels Group, LaSalle Hotel Properties, Marriott International, Park Hotels & Resorts, Inc., Pebblebrook Hotel Trust, RLJ Lodging Trust, Ryman Hospitality Properties, Summit Hotel Properties, Sunstone Hotel Investors, Wyndham Hotels & Resorts, and Xenia Hotels & Resorts.
This communication is not a call to action to engage in a securities transaction and has not been individually tailored to a specific client or targeted group of clients. Research reports on the companies identified in this communication are provided by Robert W. Baird & Co. Incorporated, and are available to clients through their Baird Financial Advisor. This communication does not provide recipients with information or advice that is sufficient on which to base an investment decision. This communication does not take into account the specific investment objectives, financial situation or need of any particular client and may not be suitable for all types of investors. Recipients should consider the contents of this communication as a single factor in making an investment decision. Additional fundamental and other analyses would be required to make an investment decision about any individual security identified in this release.