Baird/STR Hotel Stock Index Increases 2.2 Percent in March 2022

HENDERSONVILLE, Tennessee, and MILWAUKEE—The Baird/STR Hotel Inventory Index elevated 2.2 % in March to a level of 5,882. 12 months to date via the 1st 3 months of 2022, the inventory index amplified 2.4 percent.

“Hotel shares increased in March but underperformed their benchmarks as stock marketplace volatility eased and geopolitical problems did not worsen,” stated Michael Bellisario, senior lodge study analyst and director at Baird. “Underlying lodge fundamentals continued to increase in March, and the outlook seems far more favorable these days than just one particular month back in spite of all of the qualifications sound in the stock sector and with fascination rates on the increase. Increased gas charges and heightened issues about a slower expansion backdrop have been topical with investors currently, but broader travel momentum and pent-up demand from customers should really preserve the lodging recovery heading above the in close proximity to phrase, in our view.”

“With a robust spring break, and ongoing advancement in business travel, all eyes are now on the spring meeting year,” said Amanda Hite, STR’s president. “Midweek flight numbers and resort occupancies go on to display enhancement, hinting at ongoing return-to-business office momentum and healthier corporate need. 7 days-to-7 days volatility in vital performance indicators, which was normal pre-pandemic but then absolutely absent for the previous two yrs, is also returning, hinting at a additional normalization in vacation patterns. Our exploration signifies that higher fuel price ranges are not a deterrent to leisure travel, as individuals may possibly make different journey decisions but will likely not abandon their trips entirely. The most current profitability knowledge also demonstrates ongoing enhancement now that the affect of the Omicron variant is subsiding, but labor expenditures and availability continue to be top rated of thoughts for operators.”

In March, the Baird/STR Hotel Inventory Index fell powering each the S&P 500 (up 3.6 p.c) and the MSCI US REIT Index (up 5.9 %).

The Lodge Brand sub-index rose 1.4 p.c from February to 10,511, although the Lodge REIT sub-index jumped 5.1 per cent to 1,333.