The stock values of public hotel companies retreated slightly in July after two consecutive months of growth.
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 — fell 0.6% in July. So far in 2025 the index has declined in four of seven months.
Year to date, the Hotel Stock Index is down 4.3%.
The S&P 500 — an indicator of the health of the broader economy — rose 2.2% in July. Year to date, the S&P 500 is up 7.8%.
“Hotel stocks declined slightly in July as industry-wide RevPAR growth remained sluggish,” said Michael Bellisario, senior research analyst and managing director at Baird. “In conjunction with second-quarter earnings, most hotel companies took a more conservative approach to their fundamental outlooks for the remainder of the year in part due to continued macroeconomic uncertainties, a still-short booking window, and customer pricing sensitivity; however, the near-term demand trajectory appears on more stable footing ahead of the busier business travel and group mix months.”
The RMZ, or MSCI U.S. REIT Index — which is a gauge of the overall real estate investment market — declined 0.9% in July.
The hotel brand sub-index fell 0.8% in July, while the hotel REIT sub-index rose just 0.6%.
Month over month, Wyndham Hotels & Resorts' stock rose 5.9%, followed by Ashford Hospitality Trust's stock up 5.6%. Braemar Hotels & Resorts' stock fell 10.2% month over month.
Year over year, Hilton led the way among public hotel companies with its stock rising 24.9%. Marriott International (+16.1%) and IHG Hotels & Resorts (+14.6%) rounded out the top three year-over-year performers. At the other end, Ashford Hospitality Trust (-38.8%) and Braemar Hotels & Resorts (-38%) reported the sharpest year-over-year declines.
For more information about the Hotel Stock Index, email hotelstockindex@rwbaird.com.
The Baird Hotel Stock Index and sub-indices are available exclusively on Hotel News Now. The indices were created by Robert W. Baird & Co. (Baird). The market-cap-weighted, price-only indices comprise 20 of the largest market-capitalization hotel companies publicly traded on a U.S. exchange and attempt to characterize the performance of hotel stocks. The Index and sub-indices are maintained by Baird and hosted on Hotel News Now, are not actively managed, and no direct investment can be made in them. As of 30 June 2021, the companies that comprised the Baird Hotel Stock Index included: Apple Hospitality REIT, Ashford Hospitality Trust, Chatham Lodging Trust, Choice Hotels International, DiamondRock Hospitality Company, Hersha Hospitality Trust, Hilton Inc., Host Hotels & Resorts, Hyatt Hotels, InterContinental Hotels Group, Marriott International, Park Hotels & Resorts, Inc., Pebblebrook Hotel Trust, RLJ Lodging Trust, Ryman Hospitality Properties, Service Properties Trust, Summit Hotel Properties, Sunstone Hotel Investors, Wyndham Hotels & Resorts, and Xenia Hotels & Resorts.