Stock prices of public hotel companies are thriving as 2024 draws to a close.
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 9.8% in November, its highest monthly gain this year.
The Hotel Stock Index has risen in four straight months and in eight of 11 months of 2024. Recently, the index rose 1.9% in October and rose 4.1% in September. The index decreased in April, May and July.
The S&P 500 — an indicator of the health of the broader economy — increased 5.7% in November. The RMZ, or MSCI U.S. REIT Index — which is a gauge of the overall real estate investment market — rose 4.2% for the month.
The hotel brand sub-index increased by 10% in November, while the hotel REIT sub-index rose by 8.8%.
“Hotel stocks jumped nearly 10% in November and outperformed on the heels of investors’ post-election optimism,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Not only have investors bid up economically sensitive stocks on the hopes of better near-term growth prospects, particularly domestically, but also RevPAR trends have been better than expected in recent weeks, which supports an upward bias to estimates, outlooks, and overall sentiment.”
Month over month, Braemar Hotels & Resorts led the way with its stock up 25.9%, followed closely by Ashford Hospitality Trust, which was up 23.8%. Even companies in the "bottom performers" of the index saw their stock price increase by more than 6% from the previous month.
Year over year, Braemar's stock is up 71.4%, followed by IHG Hotels & Resorts up 60.7% and Hilton up 51.3%. Ashford Hospitality Trust's stock is down 59.1% from the prior year.
Year to date, the Hotel Stock Index is up 24.3%, just behind the S&P 500 — which is up 26.5% — but ahead of the RMZ, which is up 13.7%.
The hotel brand sub-index is up 31.9% year to date while the hotel REIT sub-index is down 4.3%.
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.