The Baird/STR Hotel Stock Index dipped 2.8% in May to a level of 5,148. Year to date, though, the stock index was up 12.6%. 

“Hotel stocks declined in May and underperformed their respective benchmarks for the third consecutive month,” said Michael Bellisario, senior hotel research analyst and director at Baird. “The broader reopening trade continues to lose momentum despite hotel fundamentals that continue to improve on a sequential basis, which is being driven by strong leisure demand. The return of the business traveler later this year is our key area of focus over the intermediate term.”

At STR, president Amanda Hite said, “Investor sentiment toward hotel stocks is set up to receive an injection of optimism as the summer metrics roll in over the coming weeks. Leisure demand continues to drive improvement in a lot of markets, and the Saturday before Memorial Day produced the country’s highest occupancy level—83%—since the fourth quarter of 2019. 

“With more than $2 trillion in accumulated savings, many have the means and the banked vacation time to travel and pay for premium experiences in the coming months.”