Baird/STR Stock Index Falls 3.5% in July

2012-08-13
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  • Smith Travel Research The Baird/STR Hotel Stock Index reported a 3.5-percent decrease in July to 2,329 but is up 15.0 percent year-to-date 2012. The index ended 2011 at 2,025.

    The Baird/STR Hotel Stock Index reported a 3.5-percent decrease in July to 2,329 but is up 15.0 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.

    Both the MSCI REIT (RMZ) (+1.8 percent) and the S&P 500 (+1.3 percent) outperformed the Baird/STR Hotel Stock Index in July.

    “Economic uncertainties continue to make investors apprehensive,” said Randy Smith, co-founder and chairman at STR. “The hotel industry’s performance in July has been muted due to tougher year-over-year comparisons and less weekend days compared to July 2011. We still expect to see increases in performance, though the second half of the year is projected to be softer than the first half.” 

    “Hotels underperformed for the third consecutive month as broader macroeconomic fears continue to cause investors to seek out investments in relatively safer real-estate sectors,” said David Loeb, senior hotel research analyst and managing director at Baird. "Second-quarter earnings have been strong but conservative guidance, especially for the third quarter given the July 4 holiday occurring midweek, likely spooked some investors given the expected deceleration in (revenue-per-available-room) gains; we believe management teams are being overly conservative."


    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 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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