The Baird/STR Lodge Inventory Index elevated 9.3% in November to a stage of 6,119.
“Lodge shares rose sharply in November and snapped a three-month dropping streak; efficiency typically tracked the benchmarks,” mentioned Michael Bellisario, senior lodge analysis analyst and director at Baird. “Decrease rates of interest primarily drove the beneficial properties throughout the month, notably for actual property shares, and general investor sentiment improved. Yr thus far, the lodge REIT sub-index turned optimistic and is now +7.6%, whereas the lodge model sub-index at +30.6% continues to be a relative outperformer.”
“As anticipated, U.S. lodge demand dipped barely in November because of lessened group journey throughout Thanksgiving week,” mentioned Amanda Hite, STR president. “The trade will see some profit from an prolonged break between Thanksgiving and Christmas, permitting enterprise vacationers and teams to squeeze in a single final go to earlier than yr’s finish. We lately upgraded our 2023 ADR and RevPAR forecast, which displays the continued buoyancy of vacationers, and count on to see continued RevPAR development into the brand new yr as room charges stay sturdy.”
In November, the Baird/STR Lodge Inventory Index surpassed the S&P 500 (+8.9%) however fell behind the MSCI US REIT Index (+10.2%).
The Lodge Model sub-index elevated 8.6% from October to 11,627, whereas the Lodge REIT sub-index jumped 12.1% to 1,117.
In regards to the Baird/STR Lodge Inventory Index and Sub-Indices
The Baird/STR Lodge Inventory Index was set to equal 1,000 on 1 January 2000. Beforehand, the Index peaked at 3,178 on 5 July 2007, and the low occurred on 6 March 2009 at 573. The latest all-time excessive occurred on 22 November 2023 at 6,229.
The Lodge Model sub-index was set to equal 1,000 on 1 January 2000. Beforehand, the sub-index peaked at 3,407 on 5 July 2007, and the low occurred on 6 March 2009 at 722. The latest all-time excessive occurred on 22 November 2023 at 11,932.
The Lodge REIT sub-index was set to equal 1,000 on 1 January 2000. The sub-index’s all-time excessive was 2,555 on 2 February 2007, and the low occurred on 5 March 2009 at dropped to 298. The latest cycle highs have been 2,036 at 26 January 2015 and 1,440 on 17 March 2021.
About STR
STR offers premium knowledge benchmarking, analytics and market insights for the worldwide hospitality trade. Based in 1985, STR maintains a presence in 15 international locations with a North American headquarters in Hendersonville, Tennessee, a global headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), a number one supplier of on-line actual property marketplaces, data and analytics within the business and residential property markets. For extra data, please go to str.com and costargroup.com.
