Baird Hotel Stock Index rose 1.3% after two months of declines
Hotel company stock values reversed two months of declines with an increase in September.
The Baird Hotel Stock Index — which comprises 20 of the largest hotel brand companies and real estate investment trusts publicly traded on a U.S. stock exchange by market capitalization — rose 1.3% in September, its first increase since June. Year to date, the index is up 14.4%.
The S&P 500 — an indicator of the health of the broader economy — dipped 0.5% in September and is up 11.8% year to date.
“Hotel stocks performed relatively well in September with both sub-indices outperforming their benchmarks,” said Michael Bellisario, senior research analyst and managing director at Baird. “Higher interest rates dominated the investment narrative and capital flows last month, which was a relative positive for hotel stocks, especially the hotel REITs. Recent industrywide RevPAR growth has continued to be better than expected, and earnings estimates for both the global hotel brands and hotel REITs are biased higher for the remainder of the year, in our opinion.”
The RMZ, or MSCI U.S. REIT Index — which is a gauge of the overall real estate investment market — decreased 5.9% in September.
The hotel brand sub-index rose by 1.5% in September, while the hotel REIT sub-index was mostly flat (-0.1%) during the month.
Month over month, Marriott International led the way with its stock up 4.1% in September. Conversely, Ashford Hospitality Trust’s stock price was down 25.9%.
Year over year, Chatham Lodging Trust’s stock outpaced all other companies with its values up 99.4% in September. Ashford Hospitality Trust’s stock was down 59.8% during the month.
By: Dan Kubacki / CoStar News