The stocks of public hotel companies ended 2024 on a sour note, with December performance trending downward along with much of the broader market.
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 — declined 2.9% in December, the fourth month-over-month decrease of 2024 but the first since July.
The S&P 500 — an indicator of the health of the broader economy — fell 2.5% in December, slightly outpacing the Baird Hotel Stock Index.
“Hotel stocks were down in December as the broader market pulled back primarily as a result of higher interest rates and fading post-election optimism,” said Michael Bellisario, senior hotel research analyst and director at Baird. “The global hotel brands gained nearly 29% in 2024 and outperformed the S&P 500 for the fourth consecutive year. The hotel REITs declined 9% in 2024 and underperformed their real estate benchmark as [revenue per available room] growth, particularly during the summer months, fell short of expectations and strikes and weather events negatively impacted performance.”
The RMZ, or MSCI U.S. REIT Index — which is a gauge of the overall real estate investment market — fell 8% for the month.
The hotel brand sub-index decreased by 2.5% in December, while the hotel REIT sub-index dipped by 5%.
Month over month, hotel REITs Sunstone Hotel Investors and Summit Hotel Properties led the way in terms of stock performance, up 10.1% and 4.1%, respectively. Ashford Hospitality Trust, Braemar Hotels & Resorts and Ryman Hospitality Properties each reported double-digit, month-over-month declines.
Year over year, IHG Hotels & Resorts reported a stock gain of 37% in December, followed closely by Hilton, which was up 35.7% from December 2023. Ashford Hospitality Trust's stock was down 62.9% year over year for the month.
Year to date through December 2024, the Baird Hotel Stock Index increased 20.7%. The S&P 500 was up 23.3%, and the RMZ increased 4.6% year to date.
The hotel REIT sub-index ended the year down 9.1%, while the hotel brand sub-index was up 28.5% year to date.
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.