The Baird/STR Hotel Stock Index decreased by 2.5% in February – to a level of 5,541 – 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 – just like the broader market – pulled back in February, as the focus turned to earnings and initial 2023 outlooks. The global hotel brand stocks, while down slightly during the month, outperformed the S&P 500 on the heels of strong fourth-quarter earnings reports and guidance that matched expectations. Hotel REITs were weaker and relatively underperformed, as investors focused on somewhat mixed fourth-quarter earnings reports and 2023 guidance that embedded heightened expense pressures and outsized renovation disruption.”
Statement By STR President
The statement published on STR.com also quoted its president, Amanda Hite, as saying, “Growth in US hotel RevPAR moderated in February, to a 17.3% increase from 2022. That gain was driven by ADR, which increased [by] 10.7%, while occupancy was just 5.5% above February 2022. Room demand, however, was the second highest for any February on record and has been at or above prior monthly peaks for the past six months, with records set in September and December. Looking ahead, modest performance is expected, as easy comps give way to tougher ones, but growth is expected for the foreseeable future.”
Additional Information
The Baird/STR Hotel Stock Index surpassed both the S&P 500 (-2.6%) and the MSCI US REIT Index (-4.9%) in February, according to the statement published on STR.com, which also noted that the Hotel Brand sub-index decreased by 1.2% from January, to 10,219, while the Hotel REIT sub-index decreased by 7.0%, to 1,130.
Read More: Baird/STR Hotel Stock Index Increased In January, Notes STR
© 2023 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.
