Baird/STR Hotel Stock Index falls 2.6 percent in May

Hotel Brand sub-index fell 3.6 percent in April, while Hotel REIT sub-index rose 0.8%

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The Baird/STR Hotel Stock Index dropped 2.6 percent in May. It trailed behind the S&P 500, which increased by 0.2 percent, but outperformed the MSCI US REIT Index, which declined by 3.2 percent, according to STR.

THE BAIRD/STR Hotel Stock Index experienced a 2.6 percent decline in May, bringing it down to a level of 5,287, according to STR.

“Hotel stocks were mixed in May—the Hotel REITs increased slightly and outperformed the real estate benchmark by 400 bps, while the Global Hotel Brands declined and underperformed the S&P 500’s marginal gain by 380 bps,” said Michael Bellisario, senior hotel research analyst and director at Baird. “While macroeconomic concerns have subsided recently, investors are incrementally focused on normalizing customer and geographic demand trends and slower year-over-year RevPAR growth, particularly related to last year’s strong summer travel season domestically.”

“While small, demand was back up in May with a lift from graduations and concerts, setting the stage for a solid summer,” said Amanda Hite, STR president. “We upgraded the forecast in our most recent revision despite expectations of a mild recession and recent banking woes. In line with earlier projections, however, year-over-year growth has slowed with tougher comparables. Any growth is noteworthy though considering the underlying economic uncertainty.”

During May, the Baird/STR Hotel Stock Index lagged behind the S&P 500, which saw a 0.2 percent increase, but it performed better than the MSCI US REIT Index, which experienced a decline of 3.2 percent.

In April, the Hotel Brand sub-index experienced a decline of 3.6 percent, reaching 9,815, whereas the Hotel REIT sub-index recorded a growth of 0.8 percent, reaching 1,053.

Meanwhile, Baird/STR Hotel Stock Index increased 1.4 percent in April to a level of 5,430.