HENDERSONVILLE, Tennessee, and MILWAUKEE — October 12, 2021 — The Baird/STR Hotel Stock Index rose 5.2% in September to a level of 5,167. Year to date through the first nine months of 2021, the stock index was up 13.0%.
“Hotel stocks rebounded strongly in September and finally broke their streak of six consecutive months of relative underperformance,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Delta variant concerns mostly subsided during the month, and hotel stocks benefited from higher interest rates and the broader market rotation that lifted all travel-related stocks.”
“The post-Labor Day period had been a source of consternation for the industry, but the early returns produced a pleasant surprise with group demand above 1 million for two consecutive weeks,” said Amanda Hite, STR president. “We did see a performance dip late in the month, but ups and downs are expected at this point in the recovery cycle. Overall, we estimate September demand at 93% of the 2019 comparable, and there were noticeable improvements in the major markets and corporate-dependent hotels. With leisure demand continuing to deliver, but business travel and groups progressing much slower, we do not expect recovery to kick into the next gear until next year.”
In September, the Baird/STR Hotel Stock Index surpassed both the S&P 500 (-4.8%) and the MSCI US REIT Index (-6.0%).
The Hotel Brand sub-index jumped 6.7% from August to 9,077, while the Hotel REIT sub-index increased 1.0% to 1,233.
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 Hotel News Now. The indices are cobranded and were created by Robert W. Baird & Co. (Baird) and STR. The market-cap-weighted, price-only indices comprise 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 30 September 2021, the companies that comprised the Baird/STR Hotel Stock Index included: Apple Hospitality REIT, Ashford Hospitality Trust, Chatham Lodging Trust, Choice Hotels International, DiamondRock Hospitality Company, Hersha Hospitality Trust, Hilton Inc., Host Hotels & Resorts, Hyatt Hotels, InterContinental Hotels Group, Marriott International, Park Hotels & Resorts, Inc., Pebblebrook Hotel Trust, RLJ Lodging Trust, Ryman Hospitality Properties, Service Properties Trust, Summit Hotel Properties, Sunstone Hotel Investors, Wyndham Hotels & Resorts, and Xenia Hotels & Resorts.