Hotel company stocks rise for third straight month

Hotel stocks rose again in June and appear quite healthy through the first half of the year.

The Baird Hotel Stock Index — which comprises 20 of the largest hotel brand companies and real estate investment trusts publicly traded on a U.S. stock exchange by market capitalization — rose 3% in June and is up 21.1% year to date.

The S&P 500 — an indicator of the health of the broader economy — dipped 1.1% during the month. Year to date, the S&P 500 is up 9.6%.

“Hotel stocks posted gains for the third consecutive month, and the hotel REITs were the notable outperformer once again,” said Michael Bellisario, senior research analyst and managing director at Baird. “Industry-wide RevPAR growth remained strong throughout June, especially within the higher-end chain scales, and growth was above analysts’ and investors’ expectations, which drove the continued relative outperformance for the sector. The global hotel brands gained more than 1% in June and outperformed the S&P 500, and the hotel REITs gained more than 11%, which capped off a three-month increase of over 35% for the sub-sector since hotel stocks and the broader market bottomed in late March.”