The Baird/STR Hotel Stock Index increased by 16.4% in January, to a level of 5,685, 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 rebounded sharply in January and were significant outperformers as the back-and-forth recessionary concerns once again subsided to start the year. Industry-wide RevPAR trends finished the year on a strong note, despite tougher calendar comparisons and weather-related travel disruptions in December. Several Hotel REITs provided fourth-quarter operational updates, and performance, generally, was in line with prior expectations. More broadly, investor sentiment has improved, which boosted stock prices across the board in January, but the macroeconomic indicators have remained mixed.”
Statement By STR President
The statement published on STR.com also quoted its president, Amanda Hite, as saying, “Altogether, US performance in January felt normal, with preliminary data showing the month’s second-highest room demand on record. Our most recent revision to the forecast included a modest upgrade for 2023, with continued RevPAR growth – albeit at a lower level. Industry leaders have displayed quite a bit of confidence in recent weeks, and we share in the positive outlook while expecting gains to slow, as ADR growth slips below the rate of inflation. Regardless, the industry is in solid shape, with typical seasonal patterns on a week-to-week basis.”
Additional Information
The Baird/STR Hotel Stock Index surpassed both the S&P 500 (+6.2%) and the MSCI US REIT Index (+10.5%) in January, according to the statement published on STR.com, which also noted that the Hotel Brand sub-index increased by 16.2% from December, to 10,342, while the Hotel REIT sub-index increased by 17.1%, to 1,216.
Read More: Restaurant And Hotel Prices Increased Year On Year In December, Notes CSO
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