The Baird/STR Hotel Stock Index jumped 15.8% in October to a level of 5,286. Year to date through the first 10 months of 2022, the stock index was down 8.0%.

“October was a strong rebound month for hotel stocks, and they recouped all their losses from the prior two months,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Importantly, both the global hotel brands and the hotel REITs were relative outperformers versus their respective benchmarks in October. As investors shifted their focus from broader macroeconomic uncertainties to sector-specific performance ahead of and through third-quarter earnings reports, hotels continued to screen favorably given still-strong underlying fundamentals and an intact post-pandemic recovery thesis.”

“Despite worries around the likely recession on the horizon, October showed no signs of slowing as U.S. demand continued to strengthen,” said Amanda Hite, STR president. “Multiple pandemic-era highs were recorded during the month, specifically demand for the group segment and the Top 25 Markets. We expect these strong demand trends to continue through the fourth quarter with a strong holiday period and increased group activity into the beginning of 2023.”

In October, the Baird/STR Hotel Stock Index outgrew both the S&P 500 (+8.0%) and the MSCI US REIT Index (+4.7%).

The Hotel Brand sub-index increased 14.4% from September to 9,458, while the Hotel REIT sub-index grew 20.6% to 1,193.

Source: STRSource: STR
Source: STR

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.

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), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.