Concerns about inflation and the possibility of a recession of the U.S. economy are weighing on investors and now are taking a toll on hotel stock values, which previously have demonstrated some insulation from macroeconomic woes.
The Baird/STR Hotel Stock Index, comprising 20 of the largest hotel brand companies and real estate investment trusts publicly traded on a U.S. stock exchange by market capitalization, was down 5.8% in May. By comparison, the S&P 500 index was flat with April and the RMZ index was down 6.3% month over month.
Year to date, the hotel stock index is down 2.8%, while the S&P 500 is down 13.3% and the RMZ index is down 14.8% over the same time period.
Michael Bellisario, senior hotel research analyst and director at financial services firm Baird, said: “Hotel stocks declined in May amid the broader stock market volatility as investors grew concerned about macroeconomic slowing and inflationary pressures, among other risks and uncertainties.”
He further noted…
