The Baird/STR Hotel Stock Index reported a 2.6-percent increase to 3,538 in June and is up 11.4 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 (+1.9 percent) and the MSCI REIT (RMZ) (+0.7 percent) in June.
"Hotel stocks continued to increase in June," said Randy Smith, co-founder and chairman of STR. "Hotel performance also continues to stay strong as we expected this summer. Revenue per available room recorded the highest monthly growth (+10.0 percent) of any May on record, and preliminary results for June are showing another strong month for RevPAR growth. With two more months left in the summer we expect to continue to see positive growth for hotels."
"Hotel stocks continued their outperformance in June as RevPAR growth trends once again exceeded expectations," said David Loeb, senior hotel research analyst and managing director at Baird. "Investors have high expectations heading into the second-quarter earnings season, which will begin later this month, and most expect fundamentals to remain strong in the back half of the year; valuations are at cycle highs and stocks appear to be pricing in much of this expected strong growth."
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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