HENDERSONVILLE, Tennessee, and MILWAUKEE—The Baird/STR Hotel Stock Index dropped 2.0 percent in September to a level of 5,739.
“Hotel stocks were down again in September, but they outperformed their relative benchmarks,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Both the S&P 500 and the RMZ had their worst monthly performance of the year as higher interest rates weighed on stock prices and investor sentiment; hotels likely benefited from continued slow but stable RevPAR growth during the month. Year-to-date, the hotel brand sub-index is up 23 percent, while the Hotel REIT sub-index is down 1.5 percent.”
“U.S. room demand has decreased year over year in five of the last six months, but September’s level was the second highest ever recorded for the month behind last year,” said Amanda Hite, STR president. “Demand for premium hotels continued to grow but not enough to offset decreases by economy and independent hotels, which continue to drive the overall declines. Pricing trends continue to vary by segment as well, but overall ADR growth was at its highest level since May, which made the same true for RevPAR. There is no doubt that business travel, particularly group, has returned in recent weeks, and we expect that to continue into the holiday season.”
In September, the Baird/STR Hotel Stock Index surpassed the S&P 500 (down 4.9 percent) and the MSCI US REIT Index (down 7.5 percent).
The Hotel Brand sub-index dropped 2.4 percent from August to 10,974, while the Hotel REIT sub-index decreased 0.4 percent to 1,023.