The stock prices of hotel brands went up in June, significantly lifting the Baird Hotel Stock Index.
In June, the Baird Hotel Stock Index increased by 4.4%, reversing a trend of declines from the two prior months. In May, the Hotel Stock Index decreased by 0.9%, and in April, the index fell 7.1%.
The index comprises 20 of the largest hotel brand companies and real estate investment trusts publicly traded on a U.S. stock exchange by market capitalization.
For the month, the Hotel Stock Index outpaced the S&P 500 — an indicator of the health of the broader economy — which rose 3.5%. It also outgained the RMZ, or MSCI U.S. REIT Index, which is a gauge of the overall real estate investment market. In June, the RMZ rose 2.2%.
The hotel brand sub-index jumped 5.8% in June, while the hotel REIT sub-index declined by 1.7%.
“Hotel stocks posted gains in June driven by the global hotel brands’ outperformance; for the fourth consecutive month, the hotel REITs declined and relatively underperformed their real estate benchmark,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Investors remain concerned about slowing consumer trends, sluggish domestic RevPAR growth and still-elevated interest rates. Expectations for the back half of 2024 continue to moderate, particularly for the hotel REITs.”
Month over month, Hilton led the top five public companies — all brands — with 8.8% stock growth. Choice Hotels International (+5.1%), Marriott International (+4.6%), Wyndham Hotels & Resorts (+4.6%) and IHG Hotels & Resorts (+4.3%) rounded out the top five performers. Year over year, IHG's stock is up 50.4%, slightly outpacing Hilton's year-over-year stock growth of 49.9%. Park Hotels & Resorts was the only hotel real estate investment trust to appear in the top five public hotel companies by year-over-year stock growth, placing fifth with 28.9% growth. Park's stock growth was just behind Hyatt Hotels Corp. (+32.6%) and Marriott (+31.6%).
Conversely, public hotel REITs took the bottom slots in terms of stock performance in June. Ashford Hospitality Trust's stock fell 17% month over month and dropped 74% year over year. Braemar Hotels & Resorts' stock declined 8.6% month over month and fell 36.6% year over year.
Year to date, the Baird Hotel Stock Index ended June up 7.6%. That lags the S&P 500 — which is up 14.5% — but outperforms the RMZ Index, which year to date is down 2.2%.
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.