U.S. Hotel Stocks Experience a Dip in February, Negating January’s Uptick

• The Baird Hotel Stock Index, featuring 20 of the largest hotel brand companies and real estate investment trusts, fell by 2.3% in February, nearly erasing the 3% rise recorded in January.
• The decline in hotel stocks followed the broader market’s downturn, driven by investors’ increasing concerns about macroeconomic uncertainties and potential slower growth.

In February, hotel stocks decreased, nearly wiping out the increase observed in January. The Baird Hotel Stock Index, which includes 20 of the largest hotel brand companies and real estate investment trusts publicly traded on a U.S. stock exchange, dropped 2.3% in February, following a 3% increase in January. The S&P 500, which reflects the economy’s overall health, also fell by 1.4%.

According to Michael Bellisario, senior hotel research analyst and managing director at Baird, the dip in hotel stocks was due to the broader market’s downturn. Investors’ growing worries about macroeconomic uncertainties and a potential slowdown in growth outlook were the main drivers.

In February, the hotel brand sub-index fell by 1.8%, while the hotel REIT sub-index dropped 5.1%. Despite this, some companies like Braemar Hotels & Resorts, Hilton, and Wyndham Hotels & Resorts reported stock increases. On a year-over-year basis, Wyndham Hotels & Resorts’ stock rose 41.5%, becoming one of the top performers. On the other hand, Ashford Hospitality Trust’s stock fell by 60%.

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