The Baird/STR Hotel Stock Index increased by 2.7% in November, to a level of 5,430, and it decreased by 5.5% in the year to date – through the first 11 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 a senior hotel research analyst and director at Baird, Michael Bellisario, as saying, “Hotel stocks increased in November, but were relative underperformers for the first time since June. Softer-than-expected CPI data fed into the Federal Reserve pivot narrative, which caused the broader stock market to jump, particularly in some of the industries and sectors that had lagged recently. As a result, both the hotel REITs and the global hotel brands underperformed their respective benchmarks. Hotel fundamentals broadly continue to hold steady, but the rate of change on the top line has moderated. Following third-quarter earnings, expense pressures now are more in focus, particularly as investors focus on 2023 growth outlooks and potential risks to the overall recovery.”
Statement By STR President
The statement published on STR.com also quoted STR president Amanda Hite as saying, “US hotel room demand continued to improve in November, but year-over-year growth slowed, compared to October, due in part to the calendar shift around Halloween. Similarly, rate growth remained robust, albeit at a slightly slower pace than the previous month. Despite the slowdown in growth, nominal RevPAR remained above the pre-pandemic comparable, while inflation-adjusted RevPAR was just 4% lower than 2019. While we continue to monitor the inflation impact and likely recession, the resilience of the industry allowed us to maintain our previous projections for ADR and RevPAR in our final forecast of the year.”
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The Baird/STR Hotel Stock Index fell behind both the S&P 500 (+5.4%) and the MSCI US REIT Index (+5.6%) in November, according to the statement published on STR.com, which also noted that the Hotel Brand sub-index increased by 3.7% from October, to 9,804, while the Hotel REIT sub-index decreased by 0.2%, to 1,190.