The Hotel Brand sub-index dropped 2.4% from September to 10,710, while the Hotel REIT sub-index decreased 2.5% to 997.
HENDERSONVILLE, TENNESSEE, and MILWAUKEE – The Baird/STR Hotel Stock Index decreased 2.4% in October to a level of 5,600.
“Hotel stocks fell for the third consecutive month in October, and performance directionally tracked the broader indices,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Interest rates remained a key driver of performance, and elevated interest rates weighed on real estate stocks, which caused the hotel REITs to be relative outperformers during the month. The global hotel brands’ approximate 2% decline nearly matched the S&P 500’s pullback in October.”
“U.S. hotel demand fell 1.3% in October, partly due to a shift in calendar composition,” said Amanda Hite, STR president. “The impact was normal given the makeup of the calendar, with one less Saturday and one extra Tuesday, which was also Halloween. As expected, occupancy declined on the 31st, similar to what we saw in 2017 when the holiday fell on Tuesday, ultimately affecting monthly performance.”
In October, the Baird/STR Hotel Stock Index fell behind the S&P 500 (-2.2%) but surpassed the MSCI US REIT Index (-4.5%).
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.
