Hotel brands continue to deliver strong results for the broader hotel industry based on the latest stock performance report.
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 1.9% in October.
The Hotel Stock Index has risen in three straight months and in seven of 10 months of 2024. Recently, it rose 4.1% in September and 2.1% in August. The index's only decreases ere in April, May and July.
The S&P 500 — an indicator of the health of the broader economy — dipped 1% in October. The RMZ, or MSCI U.S. REIT Index — which is a gauge of the overall real estate investment market — fell 3% for the month.
The hotel brand sub-index increased by 2.9% in October, while the hotel REIT sub-index fell by 2.9%.
“Hotel stocks increased nearly 2% in October, and the outperformance was once again driven by the global hotel brands, particularly Choice and Wyndham due to improving [revenue per available room] growth in the lower-end chain scales,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Hotel REITs declined 3% during the month but performed in line with the broader real estate benchmark. Looking ahead post-election, all eyes are on the economy’s growth trajectory and higher interest rates.”
Month over month, Wyndham Hotels & Resorts' stock value jumped 13% and Choice Hotels International's stock price increased 7.1%. The industry's bottom performers were led by Summit Hotel Properties — with its stock price down 10.8% month over month — and Pebblebrook Hotel Trust, which reported a 9.4% stock value decline.
Year over year, Hilton's stock value was up 55% in October, followed closely by IHG Hotels & Resorts, which is up 54.5%. Ashford Hospitality Trust's stock price is down 65.7% year over year, far outpacing the other bottom performers among public hotel companies.
Year to date, the Hotel Stock Index is up 13.2%, behind the S&P 500 — which is up 19.6% — but ahead of the RMZ, which is up 9.1%.
The hotel brand sub-index is up 19.9% year to date while the hotel REIT sub-index is down 12%.
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.