Hotel Stock Performance

U.S. Hotel Stocks Flat for March 2014

The Baird/STR Hotel Stock Index reported a 0.1-percent increase to 3,253 in March. The index ended 2013 at 3,177.

Smith Travel Research The Baird/STR Hotel Stock Index reported a 0.1-percent increase to 3,253 in March. The index ended 2013 at 3,177.

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.

Both the MSCI REIT (RMZ) (unchanged) and the S&P 500 (+0.7 percent) ended March nearly flat.

"The Baird/STR Hotel Stock Index reported a positive first quarter, rising 2.4 percent," said Randy Smith, chairman and co-founder of STR. "Hotel performance was steady as we closed out the first quarter. Demand reported healthy growth year-to-date February (+3.9 percent), well above last year's growth (+2.2 percent) and above our expected growth for 2014 (+2.3 percent). We are expecting to see the growth rate slow as we hit summer."

"Stocks were relatively flat in March as investors digested earnings reports and companies' 2014 outlooks; hotel stocks underperformed the broader market but slightly outperformed other real estate sectors," said David Loeb, senior hotel research analyst and managing director at Baird. "The interest rate environment and investor confidence remain stable despite tensions overseas and the Federal Reserve's more hawkish commentary mid-month. Fundamentals are on solid footing, and momentum continues to build into the second quarter." 

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.

About STR

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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