The Baird/STR Hotel Stock Index jumped 16.4% in January to a level of 5,685.
“Hotel stocks rebounded sharply in January and were significant outperformers as the back-and-forth recessionary concerns once again subsided to start the year,” said Michael Bellisario, senior hotel research analyst and director at Baird. “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.”
"Altogether, U.S. performance in January felt normal with preliminary data showing the month's second-highest room demand on record," said Amanda Hite, STR president. "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."
In January, the Baird/STR Hotel Stock Index surpassed both the S&P 500 (+6.2%) and the MSCI US REIT Index (+10.5%).
The Hotel Brand sub-index increased 16.2% from December to 10,342, while the Hotel REIT sub-index rose 17.1% to 1,216.
About Baird
Putting clients first since 1919, Baird is an employee-owned, international wealth management, asset management, investment banking/capital markets, and private equity firm with offices in the United States, Europe and Asia. Baird has approximately 4,600 associates serving the needs of individual, corporate, institutional and municipal clients and more than $415 billion in client assets as of Dec. 31, 2021. Committed to being a great workplace, Baird ranked No. 27 on the 2022 Fortune 100 Best Companies to Work For® list – its 19th consecutive year on the list. Baird is the marketing name of Baird Financial Group. Baird’s principal operating subsidiaries are Robert W. Baird & Co. Incorporated and Baird Trust Company in the United States and Robert W. Baird Group Ltd. in Europe. Baird also has an operating subsidiary in Asia supporting Baird’s investment banking and private equity operations. For more information, please visit Baird’s website at www.rwbaird.com.
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 corporate 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), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.
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