The Baird/STR Hotel Stock Index decreased by 5.8% in May, to a level of 5,584, and it decreased by 2.8% in the year to date, through the first five months of 2022, according to a statement published on the website of hotel industry market data company STR.
Statement By Baird’s Senior Hotel Research Analyst And Director
The statement published on STR.com included one from the senior hotel research analyst and director at Baird, Michael Bellisario, wherein he said, “Hotel stocks declined in May amid the broader stock market volatility as investors grew concerned about macroeconomic slowing and inflationary pressures, among other risks and uncertainties. Hotel fundamentals have continued to improve and are showing no signs of slowing; the demand recovery is broadening, the harder-hit urban markets are rebounding, and midweek business travel is coming back at a strong pace. Despite the positive fundamental momentum, investors remain a bit skeptical and are focused on the health of the consumer amid a slowing growth backdrop.”
Statement By STR’s President
The statement published on STR.com also included one from its president, Amanda Hite, wherein she said, “Despite macroeconomic uncertainty, consumer spending on travel and hotel rooms has continued. In-person graduation ceremonies drove May performance in many university-based markets, such as New York City, which reached an occupancy level of nearly 90% – its busiest week of the pandemic-era. Leisure markets continue to show strong performance levels, with room rate growth as the prominent bright spot for the industry. Our latest forecast, released early last week at NYU, upgraded the recovery timeline for nominal RevPAR. We expect both nominal ADR and RevPAR to surpass 2019 levels in 2022. Due to increases in new supply and slower corporate demand recovery, occupancy is not forecasted to reach 2019 levels until 2024.”
Additional Information
The Baird/STR Hotel Stock Index fell behind both the S&P 500 (flat) but surpassed the MSCI US REIT Index (-6.3%) in May, according to the statement published on STR.com, which also noted that the Hotel Brand sub-index decreased by 6.0% from April, to 9,924, while the Hotel REIT sub-index decreased by 4.9%, to 1,288.
Stay up to date
Latest News
-
Retention of 9% VAT rate “crucial” to tourism industry
Dublin’s Ashling Hotel has welcomed the Government announcement that the 9% VAT rate will be retained for a further six…
7 March, 2023
-
The Old Punch Bowl Of Dublin Hits The Market
The Old Punch Bowl of 116 Rock Road, 1 Booterstown Avenue, Booterstown, Co. Dublin, has hit the market. Details…
7 March, 2023
-
Bar Sales Increased Year On Year In January
According to the Retail Sales Index January 2023 (Provisional) and December 2022 (Final) report from the Central Statistics Office (CSO),…
7 March, 2023
-
Ireland’s First ‘World French Restaurant’ Awarded To Chez Max
Chez Max, Dublin’s answer to a traditional French bistrot, and Chez Max Café became Ireland’s first restaurant to be awarded…
7 March, 2023
-
The Dean Expands Its Dublin Footprint With The Dean Townhouse
Following the launch of The Dean hotels on Dublin’s Harcourt Street and in Cork and Galway, a new extension of…
7 March, 2023
-
Dublin Airport’s Passenger Traffic Increased Year On Year In February
The number of people who passed through Dublin Airport increased by 3% in February 2023 compared to pre-COVID-19 pandemic February…
7 March, 2023
-
Dalata Hotel Group plc has announced that it has acquired a 192-bedroom hotel at 240 Seven Sisters Road, Finsbury Park,…
7 March, 2023