The Baird/STR Hotel Stock Index outperformed the S&P 500 (-1.5 percent) but underperformed the MSCI REIT (RMZ) (-0.1 percent) in July.
HENDERSONVILLE, TENNESSEE, and MILWAUKEE – The Baird/STR Hotel Stock Index reported a 1.1-percent decrease to 3,501 in July and is up 10.2 percent year to date. The index ended 2013 at 3,177.
Robert W. Baird and Co. and STR partnered to create the Baird/STR Hotel Stock Index, the first widely available U.S. hotel stock index in the hotel industry. The index combines Baird’s financial markets expertise, the data processing of STR and the up-to-the-minute distribution capabilities of Hotel News Now, the industry’s leading hotel news website.
The Baird/STR Hotel Stock Index outperformed the S&P 500 (-1.5 percent) but underperformed the MSCI REIT (RMZ) (-0.1 percent) in July.
“Though hotel stocks saw a decrease, industry performance continued to stay positive,” said Randy Smith, chairman and co-founder of STR. “As the second quarter came to a close, hotels continued to report increases; notably, revenue per available room rose by 8.2 percent in the quarter. As the summer comes to a close, travel will start to slow, but we still expect to continue to see positive performance.”
“Hotel stocks continued their outperformance through most of July, but all of their absolute gains were lost at the end of the month with six consecutive down days amid rising geopolitical tensions,” said David Loeb, senior hotel research analyst and managing director at Baird. “Investors had extremely high expectations heading into second quarter earnings season, and to date, results have not met these lofty expectations. The lodging recovery remains on track, but elevated valuations are likely to move lower in the near term.”
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
