Skip to content

Search

Latest Stories

Hotel stock index dropped 3.4 percent in August

Investors still concerned about COVID-19 Delta variant, business travel

Hotel stock index dropped 3.4 percent in August

INVESTORS REMAINED CONSERVATIVE in August, leading to a decline in the Baird/STR Hotel Stock Index from the month before. The downward pattern may continue into next year or longer.

The Baird/STR index dropped 3.4 percent during the month, compared to a 1.9 percent rise in July. Year to date through the first eight months of 2021, the stock index was up 7.4 percent.


The index fell behind the S&P 500, which rose 2.9 percent, and the MSCI US REIT Index, which was up 1.8 percent during the month.  The Baird/STR hotel brand sub-index fell 5.4 percent from July, while the Hotel REIT sub-index increased 2.5 percent.

“Hotel stocks continued their streak of relative underperformance in August as investors remained focused on the impact of the Delta variant and the likely changes to post-Labor Day business travel trends,” said Michael Bellisario, senior hotel research analyst and director at Baird. “The near-term trajectory of the recovery has flattened; however, investors appear to have priced in near-term downside scenarios, in our opinion, and they continue to look to 2022 and 2023 when the broader travel environment should be more normal versus today.”

“August performance, still shaped by continued strong demand from the American leisure traveler, came in lower than the July peak but still at a healthy level overall,” said Amanda Hite, STR’s president. “With the summer of travel behind us, all eyes are now on the fall season, which traditionally has been buoyed by corporate group demand. Unfortunately, the Delta variant has already caused major meetings cancellations, and it seems that the industry will have to wait a bit longer for that segment to return at a significant level. Whereas last year leisure travelers continued to generate room demand well into the fall, we expect softer demand this year with schools back in-person.”

More for you

WTTC travel report

WTTC: U.S. tops travel sector with $2.6T GDP

Summary:

  • The U.S. led global travel and tourism in 2024 with $2.6 trillion in GDP, WTTC reported.
  • India retained ninth place with $249.3 billion in GDP.
  • The sector supported 357 million jobs in 2024, rising to 371 million in 2025.

THE U.S. LED global travel and tourism in 2024, contributing $2.6 trillion to GDP, mainly from domestic demand, according to the World Travel & Tourism Council. Europe accounted for five of the top 10 destinations, while India ranked 9th.

Keep ReadingShow less
Park Hyatt luxury hotel celebrating 45th anniversary
Photo credit: Hyatt Hotels Corp.

Park Hyatt hits 45 years

Summary:

  • Hyatt Hotels Corp. marked 45 years of its Park Hyatt brand.
  • It recently launched “Luxury Is Personal,” its first global campaign in more than five years.
  • Its luxury hotel portfolio has grown 146 percent since 2017.

HYATT HOTELS CORP. marked the 45th anniversary of its Park Hyatt brand, launched in 1980 with Park Hyatt Chicago. It also introduced “Luxury Is Personal,” its first global marketing campaign for the brand in more than five years.

Keep ReadingShow less
U.S. government shutdown 2025 news
Photo by Andrew Harnik/Getty Images

Trump, Congress face shutdown deadline

Summary:

  • President Donald Trump will meet Congress as a shutdown looms.
  • Democrats say they are ready to negotiate a bipartisan deal.
  • Thousands of federal jobs and the U.S. travel economy are at risk if a shutdown occurs.

PRESIDENT DONALD TRUMP will meet Congressional leaders on Monday after Senate Democrats rejected a Republican stopgap spending bill to fund the government until Nov. 21. The U.S. Travel Association recently warned a government shutdown could cost the travel economy $1 billion a week.

Keep ReadingShow less
H-2B visa hospitality impact

Study: H-2B visas boost U.S. jobs and wages

Summary:

  • The H-2B visa program protects U.S. jobs and wages, according to AHLA citing a study.
  • It allows hotels and resorts to meet travelers’ needs while supporting the economy.
  • It provides foreign workers for seasonal jobs when domestic workers are unavailable.

THE H-2B VISA program does not harm U.S. jobs or wages but increases pay and supports the labor force, according to an Edgeworth Economics study. Citing that study, the American Hotel & Lodging Association said the program enables hotels and resorts to meet travelers’ needs while supporting the workforce and economy.

Keep ReadingShow less
AAHOA advocacy focuses on SBA loans, visa reform
Photo credit: AAHOA

AAHOA advocacy focuses on SBA loans, visa reform

Summary:

  • AAHOA’s FNAC focused on SBA loans, visa fees and Brand USA funding.
  • The association hosted a reception for members who donated $1,001 or more to its PAC, which supports advocacy on Capitol Hill and in state capitals.
  • The event featured SBA Administrator Kelly Loeffler of Georgia.

AAHOA’s FALL NATIONAL Advocacy Conference in Washington, D.C., on Sept. 16 to 17 focused on expanding Small Business Administration loan access, repealing the Visa Integrity Fee and restoring Brand USA funding. The biannual conferences bring hotel owners together each spring and fall to meet lawmakers and advance their priorities in federal policymaking.

Keep ReadingShow less