Hotel stocks improved for the second straight month in September at almost double the rate from August.
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 — rose 4.1% in September.
In the first three quarters of 2024, the Hotel Stock Index has risen in six of nine months. The index rose 2.1% in August.
The S&P 500 — an indicator of the health of the broader economy — increased 2% in September. The RMZ, or MSCI U.S. REIT Index — which is a gauge of the overall real estate investment market — similarly rose 2% for the month.
The hotel brand sub-index increased by 5.1% in September, while the hotel REIT sub-index dipped by 0.2%.
“Hotel stocks increased 4% in September thanks to solid gains and outperformance from the global hotel brands,” said Michael Bellisario, senior hotel research analyst and director at Baird. “The global hotel brands reacted favorably to China’s planned stimulus, while the hotel REITs were nearly flat and underperformed the broader real estate benchmark as investors continued to price in a slower-growth, lower-interest-rate environment domestically.”
Month over month, IHG Hotels & Resorts reported the highest increase in stock performance, up 9.9%. Ashford Hospitality Trust's stock declined 20.6% since August.
Year over year, Hilton's stock price jumped 53.5%, just ahead of IHG's 47.8% year-over-year increase and Hyatt Hotels Corp.'s 43.5% increase. Ashford Hospitality Trust's stock fell by 68.7% year over year.
Year to date, the Hotel Stock Index is up 11.1%, behind the S&P 500's 20.8% increase and the RMZ, which is up 12.5%. The hotel brand sub-index is up 16.5% year to date while the hotel REIT sub-index is down 9.4%.
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.