Baird/STR Hotel Stock Index Increased In April, Notes STR
The Baird/STR Hotel Stock Index increased by 0.7% in April, to a level of 5,925, and it increased by 3.1% in the year to date, through the first four months of 2022, according to a statement published on the website of hotel industry market data company STR.
Statement By Baird’s Senior Hotel Research Analyst And Director
The statement published on STR.com included one from the senior hotel research analyst and director at Baird, Michael Bellisario, wherein he said, “Hotel stocks increased modestly in April, but were significant relative outperformers as the broader travel recovery accelerated, particularly domestically. Underlying hotel fundamentals continued their rebound in April, especially in some of the harder-hit urban markets, and better-than-expected intra-quarter updates from companies boosted investor sentiment and stock prices during the month. While broader macroeconomic risks remain elevated – for example, higher interest rates, higher gas prices, [the] Russia-Ukraine conflict, and growing recession concerns – the broader travel momentum is strong, and pent-up demand continues to surprise to the upside.”
Statement By STR’s President
The statement published on STR.com also included one from its president, Amanda Hite, wherein she said, “April continued the trends of rising demand and inflation-influenced pricing. Corporate transient and group demand are climbing at a healthy rate, pointing to the continued return of business travel. Our March P&L data also showed the strongest GOPPAR level since November 2019, meaning that the strong rebound in top-line performance is translating to an improving bottom line. When looking at the pipeline, the number of rooms in construction remains on a downward trajectory, giving the majority of operators another tailwind that should last through this year and 2023.”
The Baird/STR Hotel Stock Index fell behind both the S&P 500 (-8.8%) and the MSCI US REIT Index (-4.6%) in April, according to the statement published on STR.com, which also noted that the Hotel Brand sub-index rose by 0.5% from March, to 10,561, while the Hotel REIT sub-index rose by 1.5%, to 1,353.
© 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.