The Baird/STR Hotel Stock Index decreased by 3.4% in March – to a level of 5,355 – 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 declined in March as investors digested the potential impacts from the recent banking turmoil, including the likely intermediate-term effects on economic growth. The global hotel brands declined slightly during the month and underperformed the S&P 500 on heightened macroeconomic concerns and the likely constraints on new-construction financing that could affect the companies’ net-unit-growth outlooks. Hotel REITs also fell during the month but only slightly underperformed the broader real estate benchmark; RevPAR trends were steady through the first quarter, but investors remain skeptical about the near-term outlook and upcoming tougher comparisons."
Statement By STR President
The statement published on STR.com also quoted its president, Amanda Hite, as saying, "Recent economic uncertainty and the banking crisis did not deter travelers in March, as hotel room demand was nearly equal to the level seen in 2019 and ADR rose well above the rate of inflation. Q1 occupancy and room rates came in ahead of our January forecast, underpinning the resiliency of the traveling public. Against somewhat easy omicron comparables, occupancy was 3.4 percentage points above 2022 while ADR was up 10.4% year over year."
Additional Information
The Baird/STR Hotel Stock Index fell behind both the S&P 500 (+3.5%) and the MSCI US REIT Index (-3.3%) in March, according to the statement published on STR.com, which also noted that the Hotel Brand sub-index decreased by 2.9% from February, to 9,926, while the Hotel REIT sub-index decreased by 5.1%, to 1,073.
Read More: Baird/STR Hotel Stock Index Decreased In February, Notes STR
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