The Baird/STR Hotel Stock Index reported a 1.1-percent decrease to 3,501 in July and is up 10.2 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 the S&P 500 (-1.5 percent) but underperformed the MSCI REIT (RMZ) (-0.1 percent) in July.
“Though hotel stocks saw a decrease, industry performance continued to stay positive,” said Randy Smith, chairman and co-founder of STR. “As the second quarter came to a close, hotels continued to report increases; notably, revenue per available room rose by 8.2 percent in the quarter. As the summer comes to a close, travel will start to slow, but we still expect to continue to see positive performance.”
“Hotel stocks continued their outperformance through most of July, but all of their absolute gains were lost at the end of the month with six consecutive down days amid rising geopolitical tensions,” said David Loeb, senior hotel research analyst and managing director at Baird. “Investors had extremely high expectations heading into second quarter earnings season, and to date, results have not met these lofty expectations. The lodging recovery remains on track, but elevated valuations are likely to move lower in the near term.”
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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