The Real Deal New York

Post election Hotel Stock Index soars

The index outpreformed the S&P 500 and the MSCI REIT in November
December 31, 2016 04:26PM

Trump International Hotel in D.C.

Trump International Hotel in D.C.

The recent election of Donald Trump as president of the United States has left many markets in a state of uncertainty. Nevertheless, the hotel industry is looking particularly strong, according to the Baird/STR Hotel Stock Index.

Hotel consultantcy STR reports that the index increased 11.8 percent in November 2016 to close the month at 3,474. Year to date, the index has grown 12.3 percent, according to the World Property Journal.

“Investor sentiment shifted after the election, and stock gains accelerated much like weekly RevPAR (revenue per available room) growth,” Amanda Hite, STR’s president and CEO, said in a statement. “RevPAR figures were much stronger than expected, and we think November will go in the books as an outlier. We do not expect the election result to serve as a demand catalyst beyond forecasted levels, but perhaps the overall growth slowdown the industry is facing will ease a bit in 2017.”

The Hotel Stock Index outperformed both the S&P 500 and the MSCI REIT in November. Meanwhile, the Hotel Brand sub-index increased 10.5 percent during the same period to 4,598 and Hotel REIT sub-index jumped 14.3 percent to 1,545. [WPJ]Christopher Cameron