U.S. Hotel Stocks Down 6.5% in May

2012-06-06
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  • Smith Travel Research The Baird/STR Hotel Stock Index reported a 6.5-percent decrease in May to 2,345, although it is still up 15.8 percent year-to-date 2012. The index ended 2011 at 2,025.

    The Baird/STR Hotel Stock Index reported a 6.5-percent decrease in May to 2,345, although it is still up 15.8 percent year-to-date 2012. The index ended 2011 at 2,025.

    Robert W. Baird & Company and STR partnered to create the Baird/STR Hotel Stock Index—the first widely available U.S. hotel stock index in the hotel industry. The index combines Baird’s financial markets expertise, the data processing of STR and the up-to-the-minute distribution capabilities of HotelNewsNow.com, the industry’s leading hotel news website.

    The MSCI REIT (RMZ) (-4.8 percent) and the S&P 500 (-6.3 percent) also reported decreases in May.

    “May was a slow month overall for the stock market due to many underlying factors,” said Randy Smith, chairman and co-founder of STR. “Although weekly results during the month prove that growth was muted, the hotel industry continues to regain its footing. We expect performance to remain steady as travel demand persists throughout the summer months.”

    "Macroeconomic fears and stock market volatility caused hotels to underperform, especially in the latter half of the month as investors focused on Europe," said David Loeb, senior hotel research analyst and managing director at Baird. "Investors have begun to rotate into more defensive real-estate sectors. While hotel fundamentals remain strong, we expect continued volatility and investor skepticism during the summer months."

    About the Baird/STR Hotel Stock Index

    The Baird/STR Hotel Stock Index was set to equal 1000 on 1 January 2000, as its starting point. The Index reached its peak of 3178 on 5 July 2007. The Index’s lowest point occurred on 6 March 2009, when it dropped to 573.

    The Index is available exclusively on www.hotelstockindex.com and www.HotelNewsNow.com. The Baird/STR Hotel Stock Index is a co-branded index created by Robert W. Baird & Co. (Baird) and Smith Travel Research, Inc. (STR). The market-cap weighted Index is comprised of 15 of the largest market capitalization hotel companies publicly traded on a U.S. exchange and attempts to characterize the performance of hotel stocks. The Index is maintained by Baird and is hosted on HotelNewsNow.com. The Index is not actively managed and a direct investment cannot be made in it.

    The current companies that comprise the Baird/STR Hotel Stock Index: Ashford Hospitality Trust, Choice Hotels International, DiamondRock Hospitality, FelCor Lodging Trust, Hersha Hospitality Trust, Hospitality Properties Trust, Host Hotels & Resorts, Hyatt Hotels, InterContinental Hotels Group, LaSalle Hotel Properties, Marriott International, Orient-Express Hotels, Starwood Hotels & Resorts Worldwide, Sunstone Hotel Investors and Wyndham Worldwide.

    About Baird

    Baird is an employee-owned, international wealth management, capital markets, private equity and asset management firm with offices in the United States, Europe and Asia. Established in 1919, Baird has more than 2,500 associates serving the needs of individual, corporate, institutional and municipal clients. Baird oversees and manages client assets of nearly $75 billion. Committed to being a great place to work, Baird ranked number 11 on FORTUNE’s “100 Best Companies to Work For” in 2010 – its seventh consecutive year on the list. Baird’s principal operating subsidiaries are Robert W. Baird & Co. in the United States and Robert W. Baird Group Ltd. in Europe. Baird also has an operating subsidiary in Asia supporting Baird’s private equity operations. For more information, please visit Baird’s Web site at www.rwbaird.com.

    About STR

    STR provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics, and HotelNewsNow.com. For more information, please visit www.str.com.


    Logos, product and company names mentioned are the property of their respective owners.

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