The Baird/STR Hotel Stock Index closed January at 3,723, up 0.5% from the end of 2016.
"Hotel stocks were mixed in January after significant absolute and relative gains were realized during the post-election risk-on trade," said Michael Bellisario, senior hotel research analyst and vice president at Baird. "Recent industry-wide RevPAR growth has been positive but still sluggish, and we expect management teams in the coming weeks to provide relatively cautious 2017 guidance ranges that mirror the moderate year-to-date growth trends."
"The uncertainty about the election outcome has been substituted with uncertainty over the new administration's policies that could impact travel and tourism," said Amanda Hite, STR's president and CEO. "The outlook of a perceived pro-business sentiment led us to slightly increase our previous RevPAR forecast to +2.5% in 2017 and +2.6% in 2018. This sentiment was echoed by many during the ALIS conference in January."
The Baird/STR Hotel Stock Index for January outperformed the MSCI REIT (RMZ) (-0.9%) but lagged behind the performance of the S&P 500 (+1.8%).
The Hotel Brand sub-index reported a 2.4% increase to 5,028 from December to January. The Hotel REIT sub-index fell 2.7% to 1,595 during the month.
About the Baird/STR Hotel Stock Index and Sub-Indices
The Baird/STR Hotel Stock Index was set to equal 1,000 on 1 January 2000. Last cycle, the Index peaked at 3,178 on 5 July 2007. The Index's low point occurred on 6 March 2009 when it dropped to 573.
The Hotel Brand sub-index was set to equal 1,000 on 1 January 2000. Last cycle, the sub-index peaked at 3,407 on 5 July 2007. The sub-index's low point occurred on 6 March 2009 when it dropped to 722.
The Hotel REIT sub-index was set to equal 1,000 on 1 January 2000. Last cycle, the sub-index peaked at 2,555 on 2 February 2007. The sub-index's low point occurred on 5 March 2009 when it dropped to 298.
The Baird/STR Hotel Stock Index and sub-indices are available exclusively on www.HotelNewsNow.com. The indices are cobranded and were created by Robert W. Baird & Co. (Baird) and STR. The market-cap-weighted, price-only indices are comprised of 20 of the largest market-capitalization hotel companies publicly traded on a U.S. exchange and attempt to characterize the performance of hotel stocks. The Index and sub-indices are maintained by Baird and hosted on Hotel News Now, are not actively managed, and no direct investment can be made in them.
As of 31 January 2017, the companies that comprised the Baird/STR Hotel Stock Index include: Apple Hospitality REIT, Choice Hotels International, Chesapeake Lodging Trust, DiamondRock Hospitality Company, Extended Stay America, Hilton Worldwide Holdings, Hospitality Properties Trust, Host Hotels & Resorts, Hyatt Hotels Corporation, InterContinental Hotels Group, La Quinta Holdings, LaSalle Hotel Properties, Marriott International, Pebblebrook Hotel Trust, RLJ Lodging Trust, Ryman Hospitality Properties, Summit Hotel Properties, Sunstone Hotel Investors, Wyndham Worldwide Corporation, and Xenia Hotels & Resorts.
Logos, product and company names mentioned are the property of their respective owners.