The Baird/STR Hotel Stock Index reported a 29.8-percent increase in 2013 to 3,177 and was up 4.2-percent in December 2013 as compared to December 2012. 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 the MSCI REIT (-0.4 percent) and the S&P 500 (+2.4 percent) during the month of December.
“The Baird/STR Hotel Stock Index finished 2013 on an encouraging note,” said Randy Smith, co-founder and chairman at STR. “Hotels benefitted from increased demand and limited supply growth, and we anticipate the growth gained in 2013 to continue into 2014.”
“Hotel stocks outperformed other real estate sectors for the sixth consecutive month and ended the year up 29.8%, which resulted in over 3,100 basis points of outperformance. Additionally, hotel stocks narrowly outperformed the broader market due to strong performance in the back half of the year,” said David Loeb, senior hotel research analyst and managing director at Baird. “The index ended the year within one point of its all-time high reached in July 2007 when the Hilton takeover was announced; it seems the hotel cycle may have come full circle with Hilton re-entering the public market last month.”
December marked the final month for the Hotel Stock Index to include Pebblebrook Hotel Trust and Strategic Hotels & Resorts. Those companies were replaced 1 January 2014 with Extended Stay America and Hilton Worldwide Holdings, which posted initial public offerings in late 2013 to move into the group of the 15 largest market-capitalization hotel companies publicly traded on a U.S. exchange.
“The arrival of Hilton and Extended Stay as publicly traded companies is yet another indicator of the strong position hotel companies have among investors,” Smith said. “Hilton’s IPO was among the largest of 2013 in any industry, which is a sign that there clearly is a hunger for what hotel companies bring to the investment table.”
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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