THE BAIRD/STR Hotel Stock Index witnessed a significant 5.3 percent increase in April to 4,886. The year-to-day performance through the first four months of 2019 was up 20.1 percent.
In a change from the previous month, the Baird/STR performed better than both the S&P 500 and MSCI US REIT Index, which was up 3.9 percent and down 0.4 percent respectively. The hotel brand sub-index jumped 7.3 percent from March to 7,521, while the Hotel REIT sub-index increased 1.4 percent to 1,615.
“Hotel stocks outperformed their respective benchmarks in April and both sub-indices finished higher for the month,” said Michael Bellisario, senior hotel research analyst and vice president at Baird. “Industry fundamentals in April rebounded to a level that was more in line with expectations after weaker-than-forecasted performance across the board in March, which allayed some investor concerns about slowing growth trends; also, hotel earnings for the first quarter generally have been better than feared so far, which also has led to higher stock prices.”
It’s surprising but reassuring to see investor sentiments on the hotel stock index remains on the bigger picture, said STR President and CEO Amanda Hite.
“After a weaker-than-expected March, preliminary data for April looks uninspiring, due in large part to the anticipated decline in group business around Easter. Overall, we continue to be optimistic that RevPAR growth will continue despite diminished pricing confidence,” she said.