The Baird/STR Hotel Stock Index skyrocketed by 9.3% in November to reach a level of 6,119.
“Hotel stocks saw a dramatic increase in November, breaking a three-month losing streak, which is in line with our expectations,” said Michael Bellisario, senior hotel research analyst and director at Baird. “The gains were mainly driven by lower interest rates, particularly in real estate stocks, and an overall improvement in investor sentiment. So far this year, the hotel REIT sub-index has turned positive, with a +7.6% increase, while the hotel brand sub-index is outperforming with a +30.6% increase.”
“As predicted, U.S. hotel demand dipped slightly in November due to reduced group travel during Thanksgiving week,” said Amanda Hite, STR president. “The industry will see some benefit from an extended break between Thanksgiving and Christmas, allowing business travelers and groups to squeeze in one last visit before the end of the year. We have recently updated our 2023 ADR and RevPAR projectionwhich reflects the continued strength of travelers, and expect to see ongoing RevPAR growth into the new year as room rates remain strong.”
In November, the Baird/STR Hotel Stock Index outperformed the S&P 500 (+8.9%) but fell behind the MSCI United States REIT Index (+10.2%).
The Hotel Brand sub-index rose by 8.6% from October to 11,627, while the Hotel REIT sub-index jumped by 12.1% to 1,117.
— Source: STR About the Baird/STR Hotel Stock Index and Sub-Indices
The Baird/STR Hotel Stock Index was set to equivalent 1,000 on 1 January 2000. Previously, the Index peaked at 3,178 on 5 July 2007, and the low occurred on 6 March 2009 at 573. The most recent all-time high occurred on 22 November 2023 at 6,229.
The Hotel Brand sub-index was set to equivalent 1,000 on 1 January 2000. Previously, the sub-index peaked at 3,407 on 5 July 2007, and the low occurred on 6 March 2009 at 722. The most recent all-time high occurred on 22 November 2023 at 11,932.
The Hotel REIT sub-index was set to equivalent 1,000 on 1 January 2000. The sub-index’s all-time high was 2,555 on 2 February 2007, and the low occurred on 5 March 2009 at dropped to 298. The most recent cycle highs were 2,036 at 26 January 2015 and 1,440 on 17 March 2021.
About STR
STR provides premium data benchmarking, analytics, and market insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a North American headquarters in Hendersonville, Tennessee, a global headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information, and analytics in the commercial and residential markets. For more information, please visit str.com and costargroup.com
