Skip to content

Search

Latest Stories

Baird/STR: Hotel stock index dropped 11.7 percent in January

Mounting COVID-19 fears to blame

GROWING COVID-19 CONCERNS resulted in a significant drop of 11.7 percent to 4,296 in the Baird/STR Hotel Stock Index for February. That follows a 7.7 percent drop in January and results in an 18.5 percent decrease in the index through the first two months of 2020.

The Baird/STR index’s February performance fell behind both the S&P 500 and the MSCI US REIT Index, down 8.4 percent and 8.1 percent respectively.


“Hotel stocks fell off a cliff at the end of the month due to mounting COVID-19 concerns domestically, and the broader stock market correction has disproportionately impacted travel-related stocks,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Increased cancellations and stricter corporate travel policies will impact near-term profitability for both hotel owners and hotel brands. However, the disruption for owners, particularly ones with more urban gateway and group exposure, will be far greater than the impact on the global hotel brands companies.”

The hotel brand sub-index decreased 10.6 percent from January to 7,195 while the hotel REIT sub-index declined 14.3 percent to 1,169.

“It was not surprising to see such a steep drop in the stock index given the heightened concern around the coronavirus outbreak and the overall sentiment in the market,” said Amanda Hite, STR’s president. “Prior to the wider spread outbreak, we forecasted flat RevPAR performance for the year. Performance has held to this point, but we expect a negative trend to surface at some point in this quarter’s data, especially in gateway cities.”

More for you

HIRE Act Reintroduced amid H-1B Fraud Allegations
Photo by Chip Somodevilla/Getty Images

HIRE Act reintroduced amid H-1B fraud allegations

Summary:

  • Krishnamoorthi reintroduced the HIRE Act, proposing to raise the H-1B cap to 130,000.
  • The proposal would help fill tech and defense gaps, fund STEM education.
  • Doubling the cap could boost Indian H-1B approvals if the system is fair, an expert said.

INDIAN-ORIGIN U.S. REP. Raja Krishnamoorthi recently reintroduced legislation proposing to raise the H-1B visa cap to 130,000 amid new fraud allegations against the program. Experts estimate the increase could create 45,000 to 50,000 additional opportunities for Indian professionals, though political uncertainty persists.

The Halting International Relocation of Employment Act would raise the annual H-1B cap from 65,000 (plus 20,000 for advanced degree holders) to 130,000, according to The Times of India.

Keep ReadingShow less