Baird/STR Hotel Stock Index rises 6.8% in February
Year to date, the Hotel Stock Index is up 15.1%.
HENDERSONVILLE, Tennessee, and MILWAUKEE — The Baird/STR Hotel Stock Index rose 6.8% in February to 4,684. Year to date through the first two months of 2019, the index was up 15.1%.
"We've now seen two straight months with investor sentiment on an upward trajectory even as hotel performance growth remains slow," said Amanda Hite, STR's president and CEO. "It will be interesting to see if investors remain bullish on hotel stocks with continued flat occupancy and subdued rate growth moving forward. We also continue to monitor the number of open positions in 'accommodations and food service' as published by the Bureau of Labor Statistics—that number is at roughly 1 million and growing. This will put upward pressure on wage and labor costs, which, coupled with stunted ADR growth, will impact profitability."
The increase in the Baird/STR Hotel Stock Index surpassed the S&P 500 (+3.0%) and the MSCI US REIT Index (+0.4%).
The Hotel Brand sub-index jumped 8.3% from January to 7,036, while the Hotel REIT sub-index increased 3.9% to 1,624.
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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. For more information, please visit str.com.