The Baird/STR Hotel Stock Index was mostly flat in October, down just 0.2% to a level of 3,323. Year to date through the first 10 months of 2020, the stock index was down 36.9%.
“Preliminary data suggests that RevPAR declines, which had eased in prior months, actually worsened in October,” said Amanda Hite, STR president. “Historically speaking, Labor Day has been the line of demarcation between leisure travelers returning home and corporate travelers hitting the road. But this year has obviously been different, and the lack of those two demand generators will make operators and owners look at the remainder of the year with trepidation. We publish a revised forecast during NYU’s upcoming virtual conference, but the industry should not expect much improvement from the previous version.”
The Baird/STR Hotel Stock Index in October outperformed both the S&P 500 and the MSCI US REIT Index, which both dropped 2.8%.
The Hotel Brand sub-index increased 0.4% from September to 5,993, while the Hotel REIT sub-index decreased 2.1% to 723.