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National  + Hospitality  | 

Hotel Investor Outlook Due for “Injection of Optimism”

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.”

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connect with Baird’s Bellisarioconnect with STR’s Hite

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types as well as delving into broader subject matter. He produces 15-20 daily news stories per day and also works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.

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