HENDERSONVILLE, Tennessee, and MILWAUKEE—The Baird/STR Hotel Stock Index decreased 2.4 percent in October to a level of 5,600.
“Hotel stocks fell for the third consecutive month in October, and performance directionally tracked the broader indices,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Interest rates remained a key driver of performance, and elevated interest rates weighed on real estate stocks, which caused the hotel REITs to be relative outperformers during the month. The global hotel brands’ approximate 2 percent decline nearly matched the S&P 500’s pullback in October.”
“U.S. hotel demand fell 1.3 percent in October, partly due to a shift in calendar composition,” said Amanda Hite, STR president. “The impact was normal given the makeup of the calendar, with one less Saturday and one extra Tuesday, which was also Halloween. As expected, occupancy declined on the 31st, similar to what we saw in 2017 when the holiday fell on Tuesday, ultimately affecting monthly performance.”
In October, the Baird/STR Hotel Stock Index fell behind the S&P 500 (down 2.2 percent) but surpassed the MSCI US REIT Index (down 4.5 percent).
The Hotel Brand sub-index dropped 2.4 percent from September to 10,710, while the Hotel REIT sub-index decreased 2.5 percent to 997.
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