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Baird/STR Hotel Stock Index down 4.3% in August

September 14, 2013 Statistics & Trends No Comments Email Email

The Baird/STR Hotel Stock Index reported a 4.3-percent decrease in August to 2,668. Year-to-date 2013, the Baird/STR Hotel Stock Index is up 9.0 percent. The index ended 2012 at 2,448.

Robert W. Baird and Co. and STR partnered to create the Baird/STR Hotel Stock Index—the first widely available U.S. hotel stock index in the hotel industry. The index combines Baird’s financial markets expertise, the data processing of STR and the up-to-the-minute distribution capabilities of Hotel News Now, the industry’s leading hotel news website.

The Baird/STR Hotel Stock Index outperformed the MSCI REIT (RMZ) (-7.1 percent), but underperformed the S&P 500 (-3.1 percent) during August.

“August was a slower month for hotel stocks,” said Randy Smith, chairman and co-founder of STR. “However, hotel performance started strong in the third quarter. We are expecting hotels to continue to perform well during the remainder of the year, and we project average daily rate and revenue per available room to stay strong into 2014.”

“Rising interest rates remain top of mind for investors as they continued their rotation out of yield-focused real estate sectors; hotel stocks fell in August and fell more than the S&P 500 but outperformed the broader real estate index,” said David Loeb, senior hotel research analyst and managing director at Baird. “Real estate investors preferred hotels over longer-lease asset classes given rising interest rates. July RevPAR results were solid, and trends accelerated in August, which should give confidence to investors that the recovery remains on solid footing.”

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