STR is reporting this week that the Baird/STR Hotel Stock Index increased 3.8% in June 2016, to close the month at 3,128. Year to date, the index is up 1.1%.
"As year-to-date RevPAR (revenue per available room) rebounded in June, public market activity followed suit," said Amanda Hite, STR's president and CEO. "Brexit created uncertainty in the global markets last month, but that appears to have slowed in early July. Rising sentiment, along with an anticipated and usually strong summer for U.S. hotels, will likely lead to more investor confidence."
"Hotel stocks rebounded in June as fundamentals improved a bit following several months of lackluster growth," said David Loeb, senior hotel research analyst and managing director at Baird. "The Brexit referendum at the end of the month resulted in a significant amount of capital markets volatility; however, the hotel REITs have disproportionately benefitted since the vote as lower interest rates are expected to boost real estate values as the United States appears to be the safest haven for global capital flows given the heightened level of uncertainties abroad."
The Baird/STR Hotel Stock Index for June outperformed the S&P 500 (+0.1%) but fell short of the performance of the MSCI REIT (RMZ) (+6.3%).
The Hotel Brand sub-index reported a 3.5% increase to 4,127 in June. The Hotel REIT sub-index experienced a 4.4% increase to 1,403 during the month.