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Baird/STR Hotel Stock Index declines 1.7% in July

July performance of the Baird/STR Hotel Stock Index fell behind the S&P 500 (+5.5%) and the MSCI US REIT Index (+3.9%).

HENDERSONVILLE, TENNESSEE, and MILWAUKEE – The Baird/STR Hotel Stock Index decreased 1.7% in July to a level of 3,010. Year to date through the first seven months of 2020, the stock index was down 42.9%.

“Hotel stocks underperformed again in July as industry-wide occupancy growth continued to moderate on a weekly sequential basis,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Investors remain focused on the impact of rising coronavirus case counts on broader travel trends, and prior optimism about the prospects for business travel to return in a meaningful way this fall has faded.”

“RevPAR declines over the last few weeks have not been as steep as prior weeks, but room demand, while increasing week over week, seems to have slowed,” said Amanda Hite, STR’s president. “With the vacation season still in full swing, beach- and mountain-type destinations are benefitting. Labor Day looms large, though, and it is doubtful that we will see a significant uptick in corporate demand to make up for the lack of consumers once schools start. There is basically no group demand to speak of, and we do not expect that to change for the remainder of 2020.”

July performance of the Baird/STR Hotel Stock Index fell behind the S&P 500 (+5.5%) and the MSCI US REIT Index (+3.9%).

The Hotel Brand sub-index increased 0.7% from June to 5,367, while the Hotel REIT sub-index was down 8.7% to 680.

Vicky Karantzavelou
Co-Founder & Chief Editor - TravelDailyNews Media Network | Website

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.