Industry NewsCoronavirusBaird/STR Hotel Stock Index Fell 11.7 Percent in February Amid Coronavirus Concerns

Baird/STR Hotel Stock Index Fell 11.7 Percent in February Amid Coronavirus Concerns

HENDERSONVILLE, Tennessee, and MILWAUKEE — The Baird/STR Hotel Stock Index fell 11.7 percent in February 2020 to a level of 4,296. Year-to-date through the first two months of 2020, the stock index dropped 18.5 percent.

“Hotel stocks fell off a cliff at the end of the month due to mounting COVID-19 concerns domestically, and the broader stock market correction has disproportionately impacted travel-related stocks,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Increased cancellations and stricter corporate travel policies will impact near-term profitability for both hotel owners and hotel brands; however, the disruption for owners, particularly ones with more urban gateway and group exposure, will be far greater than the impact on the global hotel brands companies.”

“It was not surprising to see such a steep drop in the stock index given the heightened concern around the coronavirus outbreak and the overall sentiment in the market,” said Amanda Hite, STR’s president. “Prior to the wider spread outbreak, we forecasted flat RevPAR performance for the year. Performance has held to this point, but we expect a negative trend to surface at some point in this quarter’s data, especially in gateway cities.”

February 2020 performance of the Baird/STR Hotel Stock Index fell behind both the S&P 500 (down 8.4 percent) and the MSCI US REIT Index (down 8.1 percent).

The Hotel Brand sub-index decreased 10.6 percent from January to 7,195 while the Hotel REIT sub-index declined 14.3 percent to 1,169.

In January, the Baird/STR Hotel Stock Index dropped 7.7 percent to 4,863.

 


Subscribe to Lodging Daily News for news and updates.

SUBSCRIBE

RELATED ARTICLES

Cobblestone Hotels Announces Signing of Property in Montevallo, Alabama

NEENAH, Wisconsin—Cobblestone Hotels announces its continued growth in the state of Alabama with the signing of the Cobblestone Hotel & Suites Main Street in...

White Lodging Hires New Chief Financial Officer, Chief Legal Officer

MERRILLVILLE, Indiana—White Lodging added to its investments and development executive team with the hirings of Noah Hoppe as executive vice president and chief financial...

This Week’s Comings & Goings

Marriott International announced that Leeny Oberg, Marriott’s chief financial officer and executive vice president, development, has decided to retire effective March 31, 2026. Read...

LODGING Exclusive: HVMG’s HVAnalytics Powers Smarter Hotel Performance

Amplifying operations is critical for the hospitality industry, especially in times of uncertainty. The hotel transaction market specifically has experienced a recent slowdown, leading...

Smart Hotel Manager Announces Collaboration With Remington Hospitality

DOVER, Delaware—Smart Hotel Manager announced that the company is working with Remington Hospitality to advance its Live Safety platform. The collaboration reflects a shared...

Coury Hospitality Expands Portfolio With Two Management Agreements

DALLAS, Texas—Coury Hospitality announced that it has assumed management of Plunge Beach Resort in Lauderdale-by-the-Sea, Florida, and Residence Inn Alexandria Old Town South at...