Skip to content

Search

Latest Stories

Hotel stock index rose 5.2 percent September

Declining concerns about the Delta variant and rising group demand credited for increase

Hotel stock index rose 5.2 percent September

HOTEL STOCKS ROSE in September based on higher-than-expected group travel business, according to the Baird/STR Hotel Stock Index. The index rose 5.2 percent during the month compared to August.

Also, the index was up 13 percent year-to-date for the first nine months of 2021. The Baird/STR index for September surpassed the S&P 500, which fell 4.8 percent from the prior month, and the MSCI US REIT Index, which dropped 6 percent.  The hotel brand sub-index rose 6.7 percent from August, while the Hotel REIT sub-index increased 1 percent.


“Hotel stocks rebounded strongly in September and finally broke their streak of six consecutive months of relative underperformance,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Delta variant concerns mostly subsided during the month, and hotel stocks benefited from higher interest rates and the broader market rotation that lifted all travel-related stocks.”

The month saw some unexpected, good news, said Amanda Hite, STR president.

“The post-Labor Day period had been a source of consternation for the industry, but the early returns produced a pleasant surprise with group demand above 1 million for two consecutive weeks,” she said. “We did see a performance dip late in the month, but ups and downs are expected at this point in the recovery cycle. Overall, we estimate September demand at 93 percent of the 2019 comparable, and there were noticeable improvements in the major markets and corporate-dependent hotels. With leisure demand continuing to deliver, but business travel and groups progressing much slower, we do not expect recovery to kick into the next gear until next year.”

More for you

Brooklyn: Panwala’s Hotel BPM to Reopen this Fall

Panwala’s Hotel BPM Brooklyn to reopen this fall

DJ BIJAL PANWALA’S Hotel BPM Brooklyn in Brooklyn, New York, is set to reopen in late fall following a multi-million-dollar renovation. The 70-room hotel will be managed by Hotel Equites.

Hotel BPM is also known as Hotel Beats Per Minute.

Keep ReadingShow less
AHLA members meet with U.S. lawmakers to discuss key hospitality legislation impacting hotel owners and workers

AHLA shares priorities with lawmakers

AHLA Members Unite on Capitol Hill to Advance Hospitality Legislation

MORE THAN 250 American Hotel & Lodging Association members met with lawmakers in the U.S. Senate and House to discuss legislative priorities critical to the hospitality industry. They raised concerns about tax and trade policies impacting hotel operating costs and travel demand amid ongoing budget reconciliation and tax negotiations.

Members also discussed expanding and upskilling the hospitality workforce through measures such as adjusting the H-2B visa cap and protecting the franchise model, which supports more than half of all U.S. hotels and 2.8 million jobs, the association 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