Baird/STR Hotel Stock Index nearly flat in October
 
Baird/STR Hotel Stock Index nearly flat in October
10 NOVEMBER 2016 8:29 AM

The Baird/STR Hotel Stock Index fell by 0.8% in October, but year to date, the index remains up 0.4%.

HENDERSONVILLE, Tennessee, and MILWAUKEE—The Baird/STR Hotel Stock Index decreased 0.8% in October to close the month at 3,108. Year to date, the index remains up 0.4%.

“Calendar shifts and subsequent strong RevPAR (revenue per available room) growth helped stocks, but October prices would indicate that investors were more focused on a pending deceleration in performance,” said Amanda Hite, STR’s president and CEO. “Supply growth and demand growth are in equilibrium, and we expect softening occupancy to eventually turn to an occupancy decline in 2017. At the same time, rate will still push moderate RevPAR growth.”
“Hotel stocks outperformed in October amid low investor expectations and rising interest rates,” said David Loeb, senior hotel research analyst and managing director at Baird. “Third-quarter earnings reports were weaker than expected and showed sequential RevPAR growth deceleration, but investors remain more focused on rising interest rates and their impact on other real estate sectors’ valuations rather than still-slowing hotel fundamentals.”

The Baird/STR Hotel Stock Index for October outperformed both the S&P 500 (-1.9%) and the MSCI REIT (RMZ) (-5.9%).

The Hotel Brand sub-index was mostly flat (-0.1% to 4,160) in October. The Hotel REIT sub-index declined 2.2% to 1,352 during the month.

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.