HENDERSONVILLE, Tennessee, and MILWAUKEE—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."
Media Contacts:
Jeff Higley
VP, Digital Media & Communications
jeff@str.com
+1 (615) 824-8664 ext. 3318
Rachael Spann Urie
Director, Public Relations
rurie@str.com
+1 (615) 824-8664 ext. 3305
Angela Pittman Taylor
Baird Public Relations
apittmantaylor@rwbaird.com
+1 (414) 765-7250
