Baird/STR Hotel Stock Index up 1.6% in November
The Baird/STR Hotel Stock Index was up 1.6% in November to 4,447. Year to date through the first 11 months of 2018, the stock index fell 9.0%.
“Hotel stocks experienced modest gains in November, but the hotel REITs underperformed their broader real estate benchmark, while the hotel brands were slight relative outperformers,” said Michael Bellisario, senior hotel research analyst and VP at Baird. “Stock market volatility moderated in November, but interest rates moved lower and macroeconomic growth concerns remained. As a result, investors positioned more defensively, which negatively impacted the hotel stocks’ performance during the month, particularly the hotel REITs.”
“There is chance that we will see a period of disconnect between underlying lodging industry fundamentals and hotel stock performance,” said Amanda Hite, STR’s president and CEO. “Record-breaking demand continues, and RevPAR growth returned in October after a one-month hiatus. However, macroeconomic jitters, fears of a trade war with China and uncertainty about the Brexit deal all seem to be weighing heavily on investors’ minds. Our assessment of the industry remains unchanged though—U.S. hotel performance is healthy, and we expect that to continue in 2019.”
The Baird/STR Hotel Stock Index’s performance lagged both the S&P 500 (+1.8%) and the MSCI US REIT Index (+4.4%).
The Hotel Brand sub-index increased 2.0% from October to 6,520, while the Hotel REIT sub-index jumped 1.0% to 1,613.
As of 3 December 2018, Chatham Lodging Trust replaced LaSalle Hotel Properties in the Hotel Stock Index and the REIT Sub-Index.
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 3 December 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, Chatham Lodging Trust, 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.
Baird is an employee-owned, international wealth management, capital markets, private equity and asset management firm with offices in the United States, Europe and Asia. Established in 1919, Baird has more than 3,500 associates serving the needs of individual, corporate, institutional and municipal clients. Baird has more than $211 billion in client assets as of June 30, 2018. Committed to being a great place to work, Baird ranked No. 12 on FORTUNE’s 100 Best Companies to Work For in 2018 – its 15th 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 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 www.rwbaird.com.
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.