Baird/STR Hotel Stock Index fell 2.0% in September

HENDERSONVILLE, Tennessee, and MILWAUKEE—The Baird/STR Hotel Stock Index dropped 2.0% in September to a level of 5,739.

"Hotel stocks were down again in September, but they outperformed their relative benchmarks,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Both the S&P 500 and the RMZ had their worst monthly performance of the year as higher interest rates weighed on stock prices and investor sentiment; hotels likely benefited from continued slow but stable RevPAR growth during the month. Year-to-date, the hotel brand sub-index is +23%, while the Hotel REIT sub-index is -1.5%.”

“U.S. room demand has decreased year over year in five of the last six months, but September’s level was the second highest ever recorded for the month behind last year,” said Amanda Hite, STR president. “Demand for premium hotels continued to grow but not enough to offset decreases by economy and independent hotels, which continue to drive the overall declines. Pricing trends continue to vary by segment as well, but overall ADR growth was at its highest level since May, which made the same true for RevPAR. There is no doubt that business travel, particularly group, has returned in recent weeks, and we expect that to continue into the holiday season.”

In September, the Baird/STR Hotel Stock Index surpassed the S&P 500 (-4.9%) and the MSCI US REIT Index (-7.5%).  

The Hotel Brand sub-index dropped 2.4% from August to 10,974, while the Hotel REIT sub-index decreased 0.4% to 1,023.

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 2023, 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.

This communication is not a call to action to engage in a securities transaction and has not been individually tailored to a specific client or targeted group of clients. Research reports on the companies identified in this communication are provided by Robert W. Baird & Co. Incorporated, and are available to clients through their Baird Financial Advisor. This communication does not provide recipients with information or advice that is sufficient on which to base an investment decision. This communication does not take into account the specific investment objectives, financial situation or need of any particular client and may not be suitable for all types of investors. Recipients should consider the contents of this communication as a single factor in making an investment decision. Additional fundamental and other analyses would be required to make an investment decision about any individual security identified in this release.

About Baird
Putting clients first since 1919, Baird is an employee-owned, international wealth management, asset management, investment banking/capital markets, and private equity firm with offices in the United States, Europe and Asia. Baird has more than 5,000 associates serving the needs of individual, corporate, institutional and municipal clients and more than $375 billion in client assets as of December 31, 2022. Committed to being a great workplace, Baird ranked No. 23 on the 2023 Fortune 100 Best Companies to Work For® list – its 20th consecutive year on the list. Baird is the marketing name of Baird Financial Group. Baird’s principal operating subsidiaries are Robert W. Baird & Co. Incorporated and Baird Trust Company in the United States and Robert W. Baird Group Ltd. in Europe. Baird also has an operating subsidiary in Asia supporting Baird’s investment banking and private equity operations. For more information, please visit Baird’s website at www.rwbaird.com.

About STR
STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information and analytics in the commercial and residential property markets. For more information, please visit str.com and costargroup.com.

Media Contacts:
Haley Luther
STR – Communications Manager
hluther@str.com
+1 (216) 278 0627

Baird Public Relations
publicrelations@rwbaird.com

+1 (414) 765-7250