Skip to content

Search

Latest Stories

Baird/STR Stock Index dropped 2.7 percent in August

Stocks ‘took a breather’ during the month after rebounding in July

Baird/STR Stock Index dropped 2.7 percent in August

THE BAIRD/STR Hotel Stock Index dipped 2.7 percent in August, according to STR. Nevertheless, the experts behind the index said the industry’s recovery remains on track.

The index decreased 12.6 percent year-to-date through the first eight months of 2022. In August it also surpassed both the S&P 500, down 4.2 percent, and the MSCI US REIT Index, which dropped 6.1 percent.  Also, the hotel brand sub-index fell 2.3 percent from July to 8,959, while the hotel REIT sub-index dropped 3.7 percent to 1,143.


“Hotel stocks took a breather in August after July’s sharp rebound. Despite the slight decline in stock prices, both the Global Hotel Brands and Hotel REITs outperformed their respective benchmarks in August,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Hotel trends have remained solid throughout the summer months despite all the capital markets volatility and macroeconomic uncertainties. However, investors appear somewhat skeptical about the prospects for a significant recovery in business transient travel post-Labor Day, and hotel stocks appear to be discounting this relatively conservative fundamental expectation, in our opinion.”

Slowing was expected at this point in the season, said Amanda Hite, STR president, but demand and room rates have remained at healthy levels.

“Upscale and upper midscale hotels reported stronger occupancy levels in August, appealing to price-conscious leisure and corporate transient travelers. With schools now back in session, owners and operators are closely watching the return of the corporate group and individual traveler to understand if, and how, patterns have changed since the onset of the pandemic,” Hite said. “Association and large group event organizers are looking forward to the first fall without significant health restrictions, which could drive event attendance to new heights. When looking at the bottom line, GOPPAR surpassed 2019 levels for a fourth consecutive month in July. But as wages increase and operations are ramped up further, expenses will likely continue to rise, putting pressure on profit growth.”

More for you

Miami JV Development: Gencom Secures $300M
Photo credit: The Ritz-Carlton

Gencom secures $300M for Miami JV development

A GENCOM-LED JOINT venture recently secured a $300 million debt facility to refinance existing debt and fund renovations at The Ritz-Carlton Key Biscayne in Miami. Key Bay Club LLLP, an affiliate of Fortune International Group, contributed the Grand Bay Club to the JV as part of the financing deal.

The partnership will combine the hotel and beach club sites into a 22-acre masterplan with more than 1,200 linear feet of beach frontage, the companies said in a statement.

Keep ReadingShow less
CBRE: US Hotel RevPAR to Grow 1.3 Percent in 2025

CBRE: RevPAR to grow 1.3 percent in 2025

U.S. HOTEL REVPAR is expected to grow 1.3 percent in 2025, supported by urban markets from group and business travel and increased demand for drive-to and regional leisure destinations, according to CBRE. Occupancy is forecast to rise 14 basis points and ADR 1.2 percent year-over-year.

This represents slower growth than CBRE’s February forecast, which projected 2 percent RevPAR growth based on a 21-basis-point increase in occupancy and a 1.6 percent rise in ADR, the commercial real estate and investment firm said.

Keep ReadingShow less