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Baird/STR Hotel Stock Index Increased In July, Notes STR

By Dave Simpson

The Baird/STR Hotel Stock Index increased by 14.3% in July to a level of 5,158, and it decreased by 10.4% in the year to date, through the first seven 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 rebounded sharply and outperformed their respective benchmarks in July; relative outperformance has continued in August. Despite the big gains in July, hotel stocks did not fully recapture June's losses. Positively, second quarter earnings exceeded analysts' and investors' expectations, and broader recession fears have begun to subside, which has boosted sentiment and stock prices. All eyes are on the post-Labor Day outlook that should reflect a more normalized travel environment."

Statement By STR President

The statement published on STR.com also included a statement from STR president Amanda Hite that said, "Echoed by the positive sentiment expressed in Q2 earnings calls, U.S. hotel performance continues to support a positive outlook. Last week at the Hotel Data Conference, we unveiled our latest forecast, which lifted ADR projections once again as second quarter room rates exceeded expectations. Moving forward, we anticipate continued robust ADR growth in a positive demand environment. With the fall season fast approaching, all eyes will be on group and corporate transient demand as leisure travel traditionally slows during this period. Group travel, thus far, has been one of the recovery success stories, while individual corporate travel continues to lag. Business transient is gaining traction, but we don’t expect a return to pre-pandemic levels for some time."

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The Baird/STR Hotel Stock Index surpassed both the S&P 500 (+9.1%) but surpassed the MSCI US REIT Index (+8.7%) in July, according to the statement published on STR.com, which also noted that the Hotel Brand sub-index increased by 14.2% from June to 9,171, while the Hotel REIT sub-index increased by 14.6%, to 1,188.

© 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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