The Baird/STR Hotel Stock Index reported a 4.3-percent increase in September to 2,796. Year-to-date 2013, the Baird/STR Hotel Stock Index is up 14.2 percent. The index ended 2012 at 2,448.
Robert W. Baird and Co. and STR partnered to create the Baird/STR Hotel Stock Index, the first widely available U.S. hotel stock index in the hotel industry. The Index combines Baird's financial markets expertise, the data processing of STR and the up-to-the-minute distribution capabilities of Hotel News Now, the industry's leading hotel news website.
The Baird/STR Hotel Stock Index outperformed both the MSCI REIT (RMZ) (+2.8 percent) and the S&P 500 (+3.0 percent) during September.
"Hotel stocks ended the third quarter on a positive note," said Randy Smith, co-founder and chairman of STR. "Hotel performance continues to improve. Average daily rate and revenue per available room continue to hit record levels. Demand continues to stay strong as supply reports minimal growth. We expect to see these trends continue as we finish the year.
"We are very concerned about the current federal government shutdown and the impact it may have on a few key markets, such as Washington, D.C., Norfolk-Virginia Beach, Virginia, and San Diego, California."
"Hotel stocks continued their outperformance in September, especially on a relative basis compared to other real estate sectors, as the rotation out of yield-focused sectors continued," said David Loeb, senior hotel research analyst and managing director at Baird. "Industry-wide RevPAR growth was approximately 5.0 percent in September, a deceleration compared to July and August, and growth could remain modest into October as the government remains partially shut down."
About the Baird/STR Hotel Stock Index
The Baird/STR Hotel Stock Index was set to equal 1000 on 1 January 2000, as its starting point.
The current companies that comprise the Baird/STR Hotel Stock Index: Ashford Hospitality Trust, Choice Hotels International, DiamondRock Hospitality, FelCor Lodging Trust, Hersha Hospitality Trust, Hospitality Properties Trust, Host Hotels & Resorts, Hyatt Hotels, InterContinental Hotels Group, LaSalle Hotel Properties, Marriott International, Orient-Express Hotels, Starwood Hotels & Resorts Worldwide, Sunstone Hotel Investors and Wyndham Worldwide.
STR provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics, and HotelNewsNow.com. For more information, please visit www.str.com.
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