The Baird/STR Hotel Stock Index outperformed both the MSCI REIT (RMZ) (-2.2 percent) and the S&P 500 (+2.4 percent) in September 2012.
The Baird/STR Hotel Stock Index reported a 3.3-percent increase in September to 2,475 and is up 22.2 percent year-to-date 2012. The index ended 2011 at 2,025.
“As the third quarter came to a close, the Baird/STR Hotel Stock Index showed a modest increase as the stocks outperformed the RMZ and S&P for the second month in a row,” said Randy Smith, co-founder and chairman at STR.
“The hotel industry continues to report solid performance gains, and as we head into the fourth quarter, investors will be able to look back on 2012 as a year of overall improvement in industry fundamentals. While there are still significant economic hurdles ahead, the industry will enter 2013 with relatively low supply growth and improving room rates, which should help overcome some of these issues.”
“Hotel stocks outperformed for the second consecutive month as they benefitted from the risk-on trade ahead of the Fed's QE3 announcement,” said David Loeb, senior hotel research analyst and managing director at Baird.
“Industry trends for September came in a bit below expectations due to the calendar shift of the Jewish holidays, but October results have been and should continue to be strong due to favorable comparisons; third-quarter reporting season has begun, and investors are keying on group business trends, which are steadily improving, and 2013 outlooks, which are likely to be in the 5-percent to 7 percent (revenue-per-available-room) growth range."