HENDERSONVILLE, Tennessee, and MILWAUKEE—The Baird/STR Hotel Stock Index grew 8.2% in July to a level of 6,074.
“Hotels stocks outperformed again in July with the global hotel brands leading the way higher,” said Michael Bellisario, senior hotel research analyst and director at Baird. “For the last few months, broader stock market momentum and investors’ risk-on appetite have bolstered the hotel stocks’ performance; additionally, continued international strength and recovering cross-border travel have benefitted the Global Hotel Brands. The Hotel REITs face challenging near-term growth comparisons for the remainder of the year, but investor expectations have been reset recently and now better reflect this slower growth outlook, in our opinion.”
“Demand was basically flat year over year, which has been the trend for the last three months or so,” said Amanda Hite, STR president. “However, the industry is still in recovery mode, and the lower growth we’re seeing this summer is more about a return to normal as opposed to a weakening in performance. The Top 25 Markets continue to see demand strengthen whereas all other markets have fallen back to more traditional levels of performance. ADR and RevPAR advanced in July but at the lowest growth rates of the post-pandemic era.”
In July, the Baird/STR Hotel Stock Index outperformed both the S&P 500 (+3.1%) and the MSCI US REIT Index (+2.7%).
The Hotel Brand sub-index jumped 9.0% from June to 11,492, while the Hotel REIT sub-index grew 5.3% to 1,129.
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Author: Theodore Koumelis