The Baird/STR Hotel Stock Index increased 9.3% in November to a level of 6,119.
“Hotel stocks rose sharply in November and snapped a three-month losing streak; performance generally tracked the benchmarks,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Lower interest rates primarily drove the gains during the month, particularly for real estate stocks, and overall investor sentiment improved. Year to date, the hotel REIT sub-index turned positive and is now +7.6%, while the hotel brand sub-index at +30.6% continues to be a relative outperformer.”
“As expected, U.S. hotel demand dipped slightly in November due to lessened group travel during Thanksgiving week,” said Amanda Hite, STR president. “The industry will see some benefit from an extended break between Thanksgiving and Christmas, allowing business travelers and groups to squeeze in one last visit before year’s end. We recently upgraded our 2023 ADR and RevPAR forecast, which reflects the continued buoyancy of travelers, and expect to see continued RevPAR growth into the new year as room rates remain strong.”
In November, the Baird/STR Hotel Stock Index surpassed the S&P 500 (+8.9%) but fell behind the MSCI US REIT Index (+10.2%).
The Hotel Brand sub-index increased 8.6% from October to 11,627, while the Hotel REIT sub-index jumped 12.1% to 1,117.
About the Baird/STR Hotel Stock Index and Sub-Indices
The Baird/STR Hotel Stock Index was set to equal 1,000 on 1 January 2000. Previously, the Index peaked at 3,178 on 5 July 2007, and the low occurred on 6 March 2009 at 573. The most recent all-time high occurred on 22 November 2023 at 6,229.
The Hotel Brand sub-index was set to equal 1,000 on 1 January 2000. Previously, the sub-index peaked at 3,407 on 5 July 2007, and the low occurred on 6 March 2009 at 722. The most recent all-time high occurred on 22 November 2023 at 11,932.
The Hotel REIT sub-index was set to equal 1,000 on 1 January 2000. The sub-index’s all-time high was 2,555 on 2 February 2007, and the low occurred on 5 March 2009 at dropped to 298. The most recent cycle highs were 2,036 at 26 January 2015 and 1,440 on 17 March 2021.
About STR
STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information and analytics in the commercial and residential property markets. For more information, please visit str.com and costargroup.com.
