The Baird/STR Hotel Stock Index reported a 4.7-percent increase to 3,448 in May and is up 8.5 percent year to date. 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.
The Baird/STR Hotel Stock Index outperformed both the S&P 500 (+2.1 percent) and the MSCI REIT (RMZ) (+2.1 percent) in May.
“Hotel stocks had a good month in May and are performing strong in year-to-date results,” said Randy Smith, co-founder and chairman of STR. “Hotels continue to report positive performance as we begin the third quarter. We predict the industry to continue its upward trend, ending the year with a projected 4.2-percent average daily rate and a 5.7-percent RevPAR growth.”
“Hotel stocks hit new highs once again as the outlook for continued top- and bottom-line growth remains robust. May RevPAR growth was well ahead of expectations, which has added to investor optimism,” said David Loeb, senior hotel research analyst and managing director at Baird. “Still-low interest rates are fueling increased transaction activity, which is supporting valuations, and most investors and management teams expect M&A activity to increase as the year progresses.”
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.
Logos, product and company names mentioned are the property of their respective owners.