HENDERSONVILLE, Tennessee, and MILWAUKEE — The Baird/STR Lodge Inventory Index dipped 2.8% in Could to a degree of 5,148. Yr to this point by way of the primary 5 months of 2021, the inventory index was up 12.6%.

“Lodge shares declined in Could and underperformed their respective benchmarks for the third consecutive month,” mentioned Michael Bellisario, senior resort analysis analyst and director at Baird. “The broader reopening commerce continues to lose momentum regardless of resort fundamentals that proceed to enhance on a sequential foundation, which is being pushed by robust leisure demand. The return of the enterprise traveler later this 12 months is our key space of focus over the intermediate time period.”
“Investor sentiment towards resort shares is ready as much as obtain an injection of optimism because the summer time metrics roll in over the approaching weeks,” mentioned Amanda Hite, STR president. “Leisure demand continues to drive enchancment in a variety of markets, and the Saturday earlier than Memorial Day produced the nation’s highest occupancy degree—83%—for the reason that fourth quarter of 2019. With greater than 2 trillion {dollars} in accrued financial savings, many have the means and the banked trip time to journey and pay for premium experiences within the coming months. If 2020 is any information, we count on sturdy demand for locations that supply entry to seashores, parks and different out of doors settings. On the identical time, there’s an understanding that full restoration stays far off till a outstanding return of enterprise journey, teams and worldwide arrivals. Midweek occupancies proceed to hover round 50%, pointing to a gradual restoration within the enterprise phase that hinders progress within the main metros and on the prime finish of the market. April was the primary month in a 12 months with greater than 2 million group rooms offered. These rooms are extra probably skewed towards social occasions with giant company gatherings nonetheless on the again burner.”
In Could, the Baird/STR Lodge Inventory Index fell behind each the S&P 500 (+0.5%) and the MSCI US REIT Index (+0.8%).
The Lodge Model sub-index decreased 2.2% from April to eight,862, whereas the Lodge REIT sub-index dropped 4.5% to 1,300.

Photograph: STRAbout 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. Final cycle, the Index peaked at 3,178 on 5 July 2007. The Index’s low level occurred on 6 March 2009 when it dropped to 573.
The Lodge Model sub-index was set to equal 1,000 on 1 January 2000. Final cycle, the sub-index peaked at 3,407 on 5 July 2007. The sub-index’s low level occurred on 6 March 2009 when it dropped to 722.
The Lodge REIT sub-index was set to equal 1,000 on 1 January 2000. Final cycle, the sub-index peaked at 2,555 on 2 February 2007. The sub-index’s low level occurred on 5 March 2009 when it dropped to 298.
The Baird/STR Lodge Inventory Index and sub-indices can be found completely on Lodge Information Now. The indices are cobranded and had been created by Robert W. Baird & Co. (Baird) and STR. The market-cap-weighted, price-only indices comprise 20 of the most important market-capitalization resort firms publicly traded on a U.S. alternate and try and characterize the efficiency of resort shares. The Index and sub-indices are maintained by Baird and hosted on Lodge Information Now, aren’t actively managed, and no direct funding might be made in them.
As of 31 Could 2021, the businesses that comprised the Baird/STR Lodge Inventory Index included: Apple Hospitality REIT, Chatham Lodging Belief, Selection Motels Worldwide, DiamondRock Hospitality Firm, Prolonged Keep America, Hersha Hospitality Belief, Hilton Inc., Host Motels & Resorts, Hyatt Motels, InterContinental Motels Group, Marriott Worldwide, Park Motels & Resorts, Inc., Pebblebrook Lodge Belief, RLJ Lodging Belief, Ryman Hospitality Properties, Service Properties Belief, Summit Lodge Properties, Sunstone Lodge Buyers, Wyndham Motels & Resorts, and Xenia Motels & Resorts.
This communication just isn’t a name to motion to have interaction in a securities transaction and has not been individually tailor-made to a particular consumer or focused group of shoppers. Analysis studies on the businesses recognized on this communication are offered by Robert W. Baird & Co. Included, and can be found to shoppers by way of their Baird Monetary Advisor. This communication doesn’t present recipients with info or recommendation that’s adequate on which to base an funding choice. This communication doesn’t keep in mind the particular funding goals, monetary scenario or want of any explicit consumer and is probably not appropriate for every type of traders. Recipients ought to think about the contents of this communication as a single consider investing choice. Extra elementary and different analyses could be required to make an funding choice about any particular person safety recognized on this launch.
About Baird
Placing shoppers first since 1919, Baird is an employee-owned, worldwide wealth administration, asset administration, funding banking/capital markets, and personal fairness agency with workplaces in the US, Europe and Asia. Baird has roughly 4,500 associates serving the wants of particular person, company, institutional and municipal shoppers and greater than $350 billion in consumer property as of December 31, 2020. Dedicated to being an incredible office, Baird ranked No. 32 on the 2021 Fortune 100 Greatest Corporations to Work For® listing. Baird is the advertising and marketing title of Baird Monetary Group. Baird’s principal working subsidiaries are Robert W. Baird & Co. Included in the US and Robert W. Baird Group Ltd. in Europe. Baird additionally has an working subsidiary in Asia supporting Baird’s funding banking and personal fairness operations. For extra info, please go to Baird’s web site at www.rwbaird.com.

About STR
STR gives premium information benchmarking, analytics and market insights for international hospitality sectors. Based in 1985, STR maintains a presence in 15 nations with a company 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), the main supplier of business actual property info, analytics and on-line marketplaces. For extra info, please go to str.com and costargroup.com.