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

By Dave Simpson

The Baird/STR Hotel Stock Index increased by 2.2% in March, to a level of 5,882, and it increased by 2.4% (year to date) through the first quarter 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 in March, but underperformed their benchmarks as stock market volatility eased and geopolitical concerns did not worsen. Underlying hotel fundamentals continued to improve in March, and the outlook appears more favourable today than just one month ago, despite all of the background noise in the stock market and with interest rates on the rise. Higher gas prices and heightened concerns about a slower growth backdrop have been topical with investors lately, but broader travel momentum and pent-up demand should keep the lodging recovery going over the near term, in our opinion.”

Statement By STR’s President

The statement published on STR.com also included one from STR’s president, Amanda Hite, wherein she said, “With a strong spring break and continued improvement in business travel, all eyes are now on the spring meeting season. Midweek flight numbers and hotel occupancies continue to show improvement, hinting at continued return-to-office momentum and healthier corporate demand. Week-to-week volatility in key performance indicators – which was normal pre-pandemic, but then totally absent for the last two years – is also returning, hinting at a further normalisation in travel patterns. Our research indicates that higher gas prices are not a deterrent to leisure travel, as consumers may make different travel choices, but will likely not abandon their trips altogether. The latest profitability data also shows ongoing improvement, now that the impact of the Omicron variant is subsiding, but labour costs and availability continue to be top of mind for operators.”

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The Baird/STR Hotel Stock Index fell behind both the S&P 500 (+3.6%) and the MSCI US REIT Index (+5.9%) in March, according to the statement published on STR.com, which also noted that the Hotel Brand sub-index rose by 1.4% from February, to 10,511, while the Hotel REIT sub-index rose by 5.1%, to 1,333.

© 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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