Statement By Senior Hotel Research Analyst And Director At Baird
The statement published on STR.com quoted senior hotel research analyst and director at Baird Michael Bellisario as saying, "Hotel stocks were mixed in May - the Hotel REITs increased slightly and outperformed the real estate benchmark by 400 bps, while the Global Hotel Brands declined and underperformed the S&P 500's marginal gain by 380 bps. While macroeconomic concerns have subsided recently, investors are incrementally focused on normalizing customer and geographic demand trends and slower year-over-year RevPAR growth, particularly related to last year’s strong summer travel season domestically."
Statement By STR President
The statement published on STR.com also quoted STR president Amanda Hite as saying, "While small, demand was back up in May with a lift from graduations and concerts, setting the stage for a solid summer. We upgraded the forecast in our most recent revision despite expectations of a mild recession and recent banking woes. In line with earlier projections, however, year-over-year growth has slowed with tougher comparables. Any growth is noteworthy though considering the underlying economic uncertainty."
The Baird/STR Hotel Stock Index fell behind the S&P 500 (+0.2%) but came in above the MSCI US REIT Index (-3.2%) in May, according to the statement published on STR.com, which also noted that the Hotel Brand sub-index decreased by 3.6% from April to 9,815, while the Hotel REIT sub-index increased by 0.8% to 1,053.
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