Hotel stocks fell for the second straight month in August.
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 5.3% in August, its biggest monthly decline since March. Year to date, the index is up 13%.
The S&P 500 — an indicator of the health of the broader economy — rose 2.6% in August and is up 12.3% year to date.
“Hotel stocks underperformed in August following second-quarter earnings that did not exceed high investor expectations,” said Michael Bellisario, senior research analyst and managing director at Baird. “Both the global hotel brands and hotel REITs materially lagged their respective benchmarks, and despite industry-wide RevPAR growth that has remained solidly positive quarter-to-date, investors have become incrementally focused on companies’ 2027 outlooks and year-over-year growth comparison headwinds, which have weighed on valuation multiples recently.”
The RMZ, or MSCI U.S. REIT Index — which is a gauge of the overall real estate investment market — decreased 3.2% in August.
The hotel brand sub-index fell by 4.8% in August, while the hotel REIT sub-index dropped 8.1% during the month.
Month over month, Park Hotels & Resorts led the way with its stock up 1.6% in August. Summit Hotel Properties (-15%), Host Hotels & Resorts (-12.7%) and Braemar Hotels & Resorts (-11%) each reported their stock down more than 10% from the previous month.
Year over year, Chatham Lodging Trust (+70.8%) and Pebblebrook Hotel Trust (+62.7%) reported the biggest stock price increases. At the other end, Ashford Hospitality Trust's stock was down 46.6% since August 2025.
For more information about the Hotel Stock Index, email hotelstockindex@rwbaird.com. The Baird Hotel Stock Index and sub-indices are available exclusively on CoStar News Hotels. 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.