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Baird/STR Hotel Stock Index up 6.9% in October

November 14, 2013 Statistics & Trends No Comments Email Email

The Baird/STR Hotel Stock Index reported a 6.9-percent increase in October to 2,988. Year-to-date 2013, the Baird/STR Hotel Stock Index is up 22.1 percent. The index ended 2012 at 2,448.

Loeb_David

Loeb_David

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 both the MSCI REIT (RMZ) (+4.3 percent) and the S&P 500 (+4.5 percent) during October.

“Hotel stocks continued their outperformance in October despite some demand softness in the month due to the government

RandySmith

RandySmith

shutdown,” said David Loeb, senior hotel research analyst and managing director at Baird. “Third-quarter earnings reports so far have been about in line with expectations, while fourth-quarter guidance has been conservative given all of the economic and

political uncertainties; however, investors remain focused on the growth outlooks for 2014 and 2015, which appear strong and show the lodging recovery on solid footing.”

Randy Smith, co-founder and chairman of STR, said the continued strong performance of the U.S. hotel industry provides publicly traded companies a solid foundation for their shareholders to build upon.

“While the percentages increases aren’t as prolific as they were in the early days of the recovery, the fact that demand, average daily rate and revenue per available room continue to set records bodes well for investors in hotel companies,” Smith said. “We anticipate the trajectory of the recovery to continue to soften, but there will be increases in the key metrics, and that should in turn, fuel more growth for the hotel industry in the foreseeable future.”

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