Hotel stocks have benefited from recent gains in the stock market, with the Bair/STR Hotel Index increasing 11.8% in November to 3,474, outperforming both the S&P 500 (+3.4%) and the MSCI REIT (RMZ) (-2.0%). Year-to-date, the index is up by 12.3%, reported the World Property Journal.
The bullish performance is being driven by gains in the revenue per available room (RevPAR), noted Amanda Hite, STR’s president and CEO. “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.”