The Baird/STR Hotel Stock Index decreased by 9.1% in September to a level of 4,564, and it decreased by 20.6% in the year to date, through the first nine 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 quoted senior hotel research analyst and director at Baird Michael Bellisario as saying, " September was a risk-off month for the broader market, and hotel stocks were down sharply as well. However, the Hotel REITs were modest underperformers only, while the Global Hotel Brands were slight relative outperformers. Broader macroeconomic concerns continue to dominate investor sentiment and positioning, but underlying hotel fundamentals held steady throughout the month, which relatively helped the hotel stocks during a volatile time for the capital markets. Investors continue to ask about recession scenarios and downside analyses for our coverage list, which suggests a lot of the bad news is being priced into the stocks, particularly the Hotel REITs, in our opinion."
Statement By STR President
The statement published on STR.com also quoted STR president Amanda Hite as saying, "While a recession is now likely on the horizon, current industry conditions have not yet been affected by a downturn in consumer or corporate spending. Group demand continues to show strong recovery in our first 'normal' meeting season since 2019. When looking at the leisure segment, weekend room rate growth shows little to no sign of easing, which continues to speak to consumer resilience. Lastly, the decline we've seen in construction activity means new supply will not represent a strong headwind and should only impact select markets such as New York and Nashville."
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The Baird/STR Hotel Stock Index surpassed both the S&P 500 (+9.3%) but surpassed the MSCI US REIT Index (-12.8%) in September, according to the statement published on STR.com, which also noted that the Hotel Brand sub-index decreased by 7.7% from August to 8,268, while the Hotel REIT sub-index decreased by 13.5%, to 989.