Baird/STR Hotel Stock Index rose 7.1% in December 2016
 
Baird/STR Hotel Stock Index rose 7.1% in December 2016
17 JANUARY 2017 9:37 AM

The Baird/STR Hotel Stock Index finished 2016 strong by increasing 7.1% from November to December and closing the year with a 19.6% year-to-date increase to 3,702.

HENDERSONVILLE, Tennessee, and MILWAUKEE—The Baird/STR Hotel Stock Index increased 7.1% from November to December and closed the year up 19.6% at 3,702.

“The strong close to the year for hotel stocks was not surprising given industry performance results in November,” said Amanda Hite, STR’s president and CEO. “We viewed the performance growth in November as an outlier caused by calendar shifts and subsequent group travel strength, thus, we have a more subdued approach in early 2017 even as the stock market seems to suggest that GDP growth will increase sharply. Despite macroeconomic and political turmoil, 2016 will be remembered as a rather average year for the hotel industry with RevPAR (revenue per available room) growth just above 3%.”

“Hotel stocks ended the year on a strong note, building upon gains realized in November after the risk-on trade continued to push stocks higher post-election,” said Michael Bellisario, senior hotel research analyst and vice president at Baird. “Hotel stock valuations appear to be pricing in a significant rebound in fundamentals for 2017, although we believe management teams will remain relatively cautious as they set guidance expectations for the upcoming year.”

The Baird/STR Hotel Stock Index for December outperformed both the MSCI REIT (RMZ) (+4.0%) and the S&P 500 (+1.8%). The index also outperformed the S&P 500 (+9.5%) and the MSCI REIT (RMZ) (+4.2%) for total-year 2016.

The Hotel Brand sub-index reported a 6.8% increase to 4,911 from November to December. The Hotel REIT sub-index experienced a 7.5% rise to 1,640 during the month. In year-end figures, the Hotel Brand sub-index increased 20.4%, and the Hotel REIT sub-index rose 17.8%.

Media Contacts:

Jeff Higley
STR
VP, Digital Media & Communications
jhigley@str.com
+1 (615) 824-8664 ext. 3318

Nick Minerd
STR
Public Relations Manager
nminerd@str.com
+1 (615) 824-8664 ext. 3305

Angela Pittman Taylor
Baird Public Relations
publicrelations@rwbaird.com
+1 (414) 765-7250

The above is a news release written by a third party. While HNN’s editorial mission is to produce unique content, it occasionally publishes timely, newsworthy news releases to complement in-house reporting efforts. All news releases are clearly marked as such. For questions and clarification, please contact Editor-in-Chief Stephanie Ricca at sricca@hotelnewsnow.com.

No Comments

Comments that include blatant advertisements or links to products or company websites will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff.