Hotel stocks plummeted to end the first quarter of 2025.
The Baird Hotel Stock Index — which comprises 20 of the largest hotel brand companies and real estate investment trusts publicly traded on a U.S. stock exchange by market capitalization — dropped 13.7% in March, its worst month-over-month decline since June 2022 (-19.3%). The index fell for a second consecutive month after a 2.3% decline in February and year to date is down 13.1%.
The S&P 500 — an indicator of the health of the broader economy — fell 5.8% month over month after a 1.4% dip in February. Year to date, the S&P 500 is down 4.6%.
“Hotel stocks pulled back sharply and underperformed in March, and the selling pressure has continued so far in April,” said Michael Bellisario, Senior Hotel Research Analyst and Managing Director at Baird. “Investors are asking about and pricing in downside scenarios for RevPAR growth and earnings estimates given the forecasted economic impacts from the higher-than-expected reciprocal tariffs; business and consumer spending likely will slow, and travel demand will undoubtedly be affected as a result.”
The RMZ, or MSCI U.S. REIT Index — which is a gauge of the overall real estate investment market — declined 4.2% in March.
The hotel brand sub-index fell 14.2% in the month, while the hotel REIT sub-index dropped 10.4%.
Month over month, public hotel companies all reported stock declines. The top performer was DiamondRock Hospitality, which still reported a 6.2% decrease. Pebblebrook Hotel Trust's stock declined the most since February, down 18%, followed by Wyndham Hotels & Resorts (-16.4%) and Summit Hotel Properties (-16.4%).
Year over year, Braemar Hotels & Resorts reported a 24.5% increase in its stock value, followed by Wyndham (+17.9%). Ashford Hospitality Trust led the bottom performers with its stock down 47.7% year over year.
For more information about the Hotel Stock Index, email hotelstockindex@rwbaird.com.
The Baird Hotel Stock Index and sub-indices are available exclusively on Hotel News Now. The indices were created by Robert W. Baird & Co. (Baird). The market-cap-weighted, price-only indices comprise 20 of the largest market-capitalization hotel companies publicly traded on a U.S. exchange and attempt to characterize the performance of hotel stocks. The Index and sub-indices are maintained by Baird and hosted on Hotel News Now, are not actively managed, and no direct investment can be made in them. As of 30 June 2021, the companies that comprised the Baird Hotel Stock Index included: Apple Hospitality REIT, Ashford Hospitality Trust, Chatham Lodging Trust, Choice Hotels International, DiamondRock Hospitality Company, Hersha Hospitality Trust, Hilton Inc., Host Hotels & Resorts, Hyatt Hotels, InterContinental Hotels Group, Marriott International, Park Hotels & Resorts, Inc., Pebblebrook Hotel Trust, RLJ Lodging Trust, Ryman Hospitality Properties, Service Properties Trust, Summit Hotel Properties, Sunstone Hotel Investors, Wyndham Hotels & Resorts, and Xenia Hotels & Resorts.