Baird/STR Stock Index Drops 3.3% 7.8% in October

2012-11-09
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  • Smith Travel Research The Baird/STR Hotel Stock Index reported a 7.8-percent decrease in October to 2,282 and is up 12.7 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 Baird/STR Hotel Stock Index underperformed in October 2012 compared with the MSCI REIT (RMZ) (-1.0 percent) and the S&P 500 (-2.0 percent) but is outperforming both in YTD 2012. The RMZ is up 10.8 percent YTD 2012 and the S&P is up 12.3 percent.

    “Hotel performance during October has been softer compared with previous months, and as third-quarter results come in, investors seem to be proceeding with caution,” said Randy Smith, co-founder and chairman of STR. “Although Superstorm Sandy affected many key East Coast markets during the last few days of the month, we are still expecting hotel fundamentals to hold steady during the last few months of 2012 and into 2013.”

    "Hotel stocks underperformed the entire month, and losses accelerated into month-end as weak third-quarter earnings reports spooked investors," said David Loeb, senior hotel research analyst and managing director at Baird. “The negative impact from the early timing of the Jewish holidays in September was greater than expected, and several management teams cited 'pockets of weakness' emerging in certain markets, which led to disappointing fourth-quarter guidance. Management teams are likely taking a conservative approach given several economic and political headwinds on the horizon as well as expected demand disruption from Hurricane Sandy."


    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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