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.

— Source: STR— Source: 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), 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.