HENDERSONVILLE, Tennessee, and MILWAUKEE—The Baird/STR Hotel Stock Index increased 9.3% in November to a level of 6,119.
“Hotel stocks rose sharply in November and snapped a three-month losing streak; performance generally tracked the benchmarks,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Lower interest rates primarily drove the gains during the month, particularly for real estate stocks, and overall investor sentiment improved. Year to date, the hotel REIT sub-index turned positive and is now +7.6%, while the hotel brand sub-index at +30.6% continues to be a relative outperformer.”
“As expected, U.S. hotel demand dipped slightly in November due to lessened group travel during Thanksgiving week,” said Amanda Hite, STR president. “The industry will see some benefit from an extended break between Thanksgiving and Christmas, allowing business travelers and groups to squeeze in one last visit before year’s end. We recently upgraded our 2023 ADR and RevPAR forecast, which reflects the continued buoyancy of travelers, and expect to see continued RevPAR growth into the new year as room rates remain strong.”
In November, the Baird/STR Hotel Stock Index surpassed the S&P 500 (+8.9%) but fell behind the MSCI US REIT Index (+10.2%).
The Hotel Brand sub-index increased 8.6% from October to 11,627, while the Hotel REIT sub-index jumped 12.1% to 1,117.
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. Previously, the Index peaked at 3,178 on 5 July 2007, and the low occurred on 6 March 2009 at 573. The most recent all-time high occurred on 22 November 2023 at 6,229.
The Hotel Brand sub-index was set to equal 1,000 on 1 January 2000. Previously, the sub-index peaked at 3,407 on 5 July 2007, and the low occurred on 6 March 2009 at 722. The most recent all-time high occurred on 22 November 2023 at 11,932.
The Hotel REIT sub-index was set to equal 1,000 on 1 January 2000. The sub-index’s all-time high was 2,555 on 2 February 2007, and the low occurred on 5 March 2009 at dropped to 298. The most recent cycle highs were 2,036 at 26 January 2015 and 1,440 on 17 March 2021.
The Baird/STR Hotel Stock Index and sub-indices are available exclusively on Hotel News Now. 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 November 2023, the companies that comprised the Baird/STR Hotel Stock Index included: Apple Hospitality REIT, Ashford Hospitality Trust, Chatham Lodging Trust, Choice Hotels International, DiamondRock Hospitality Company, Hilton Worldwide Holdings, Host Hotels & Resorts, Hyatt Hotels, InterContinental Hotels Group, Marriott International, Park Hotels & Resorts, Inc., Pebblebrook Hotel Trust, RLJ Lodging Trust, Ryman Hospitality Properties, Service Properties Trust, Summit Hotel Properties, Sunstone Hotel Investors, Wyndham Hotels & Resorts, and Xenia Hotels & Resorts. Braemar Hotels & Resorts replaced Hersha Hospitality Trust on 28 November 2023.
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.
About Baird
Putting clients first since 1919, Baird is an employee-owned, international wealth management, asset management, investment banking/capital markets, and private equity firm with offices in the United States, Europe and Asia. Baird has approximately 5,100 associates serving the needs of individual, corporate, institutional and municipal clients and more than $405 billion in client assets as of June 30, 2023. Committed to being a great workplace, Baird ranked No. 23 on the 2023 Fortune 100 Best Companies to Work For® list – its 20th consecutive year on the list. Baird is the marketing name of Baird Financial Group. Baird’s principal operating subsidiaries are Robert W. Baird & Co. Incorporated and Baird Trust Company in the United States and Robert W. Baird Group Ltd. in Europe. Baird also has an operating subsidiary in Asia supporting Baird’s investment banking and private equity operations. For more information, please visit Baird’s website at www.rwbaird.com.
