Baird/STR Lodge Inventory Index fell 2.5% in February

The Baird/STR Lodge Inventory Index fell 2.5% in February to a degree of 5,541. Baird/STR Hotel Stock Index

“Lodge shares – identical to the broader market – pulled again in February as the main target turned to earnings and preliminary 2023 outlooks,” stated Michael Bellisario, senior lodge analysis analyst and director at Baird. “The worldwide lodge model shares, whereas down barely throughout the month, outperformed the S&P 500 on the heels on robust fourth quarter earnings stories and steerage that matched expectations; lodge REITs had been weaker and comparatively underperformed as buyers centered on considerably blended fourth quarter earnings stories and 2023 steerage that embedded heightened expense pressures and outsized renovation disruption.”

“Progress in U.S. lodge RevPAR moderated in February to a 17.3% improve from 2022,” stated Amanda Hite, STR president. “That achieve was pushed by ADR, which elevated 10.7%, whereas occupancy was simply 5.5% above February 2022. Room demand, nevertheless, was the second highest for any February on file and has been at or above prior month-to-month peaks for the previous six months, with information set in September and December. Trying forward, modest efficiency is anticipated as straightforward comps give technique to harder ones, however progress is anticipated for the foreseeable future.”

In February, the Baird/STR Lodge Inventory Index surpassed each the S&P 500 (-2.6%) and the MSCI US REIT Index (-4.9%).  

The Lodge Model sub-index decreased 1.2% from January to 10,219, whereas the Lodge REIT sub-index dropped 7.0% to 1,130.