The stocks of public hotel companies continued their growth momentum in June.
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 3.7% in June, increasing in consecutive months for the first time since October and November of 2024. The index rose 9.3% in May after three consecutive months of declines.
Year to date, the Hotel Stock Index is down 3.7%.
The S&P 500 — an indicator of the health of the broader economy — rose 5% in June. Year to date, the S&P 500 is up 5.5%.
“Hotel stocks continued to rebound in June as the broader market increased and investor sentiment improved,” said Michael Bellisario, senior research analyst and managing director at Baird. “Macroeconomic and trade policy headwinds have moderated further, and worst-case downside scenarios appear unlikely to occur. However, domestic RevPAR trends have been uninspiring in recent weeks because of weaker inbound international travel and softer leisure transient demand, which have weighed on industry-wide results. Expectations are relatively low for the summer travel season, in our opinion.”
The RMZ, or MSCI U.S. REIT Index — which is a gauge of the overall real estate investment market — declined 1.3% in June.
The hotel brand sub-index increased 4.2% in June, while the hotel REIT sub-index rose just 0.6%.
Month over month, several hotel-focused real estate investment trusts saw their stock values rebound in June. Summit Hotel Properties' stock rose 16.2%, followed by Pebblebrook Hotel Trust — up 8.8% — and Braemar Hotels & Resorts, which was up 7.5%. However, Sunstone Hotel Investors reported the largest stock decrease month over month with its stock down 3.1%.
Year over year, Hilton led the way with its stock up 22.1%, followed by fellow brands Marriott International (+13%) and Wyndham Hotels & Resorts (+9.7%). Ashford Hospitality Trust and Park Hotels & Resorts reported the largest decreases in their year-over-year stock performance, down 38% and 31.7%, respectively.
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.