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Baird/STR Hotel Stock Index Decreased In June, Notes STR

By Dave Simpson

The Baird/STR Hotel Stock Index decreased by 19.3% in June to a level of 4,504, and it decreased by 21.6% in the year to date, through the first six months of 2022, according to a statement published on the website of hotel industry market data company STR.

Statement By Senior Hotel Research Analyst And Director At Baird

The statement published on STR.com included a statement from senior hotel research analyst and director at Baird Michael Bellisario that said, "Hotel stocks continued on their downward trajectory in June and were significant relative underperformers as investors began to factor in an increasing likelihood of an impending recession. While the upcoming summer travel months are expected to be strong, investors are looking beyond the near-term fundamental strength to a period when demand and ADR growth are likely to moderate, which is supported by the many macroeconomic indicators that are flashing signs of broader slowing."

Statement By STR President

The statement published on STR.com also included a statement from STR president Amanda Hite that said, "With summer vacation season in full swing, pandemic-era highs in room demand have demonstrated the sustained desire from Americans to travel. While beach destinations continue to thrive, we have seen downtown locations, which were lacking both corporate group and transient demand, post encouraging results. Room rate growth continues unabated across all chain scales, and it is good to see upper upscale hotels being able to capitalize on renewed interest. At the same time, the macroeconomic sentiment has shifted with a 'hard landing’ expected for the US economy in 2023. Developers and owners are watching the interest rate environment closely, and recent rate hikes will likely have a measurable impact on the construction pipeline going forward."

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The Baird/STR Hotel Stock Index fell behind both the S&P 500 (-8.4%) but surpassed the MSCI US REIT Index (-7.9%) in June, according to the statement published on STR.com, which also noted that the Hotel Brand sub-index decreased by 19.3% from May to 8,010, while the Hotel REIT sub-index decreased by 19.5%, to 1,036.

© 2022 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.

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