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Connecticut Lodging Association
06/16/2022
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Baird/STR Hotel Stock Index dropped 5.8% in May |
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The Baird/STR Hotel Stock Index dropped 5.8% in May to a level of 5,584. Year to date through the first five months of 2022, the stock index has decreased 2.8%.
“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,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Hotel fundamentals have continued to improve and are showing no signs of slowing; the demand recovery is broadening, the harder-hit urban markets are rebounding, and midweek business travel is coming back at a strong pace. Despite the positive fundamental momentum, investors remain a bit skeptical and are focused on the health of the consumer amid a slowing growth backdrop."
“Despite macroeconomic uncertainty, consumer spending on travel and hotel rooms has continued,” said Amanda Hite, STR president. "In-person graduation ceremonies drove May performance in many university-based markets, such as New York City, which reached an occupancy level of nearly 90% – its busiest week of the pandemic-era. Leisure markets continue to show strong performance levels, with room rate growth as the prominent bright spot for the industry. Our latest forecast, released early last week at NYU, upgraded the recovery timeline for nominal RevPAR. We expect both nominal ADR and RevPAR to surpass 2019 levels in 2022. Due to increases in new supply and slower corporate demand recovery, occupancy is not forecasted to reach 2019 levels until 2024.”
In May, the Baird/STR Hotel Stock Index fell behind the S&P 500 (flat) but surpassed the MSCI US REIT Index (-6.3%).
The Hotel Brand sub-index fell 6.0% from April to 9,924, while the Hotel REIT sub-index dipped 4.9% to 1,288.
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AHLA, AHLAF, ICHRIE ANNOUNCE PARTNERSHIP TO GROW WORKFORCE |
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The American Hotel & Lodging Association (AHLA), the AHLA Foundation, and the International Council on Hotel, Restaurant, and Institutional Education (ICHRIE) today announced a new strategic partnership, with the shared goal of growing the future workforce of the hotel and hospitality industry.
The announcement comes at a critical time for the hotel industry. According to the U.S. Bureau of Labor Statistics, in May 2022 employment in the broader leisure and hospitality industry was down more than 1.3 million jobs compared to before the pandemic. Hotels are looking to fill many of those jobs. In a May 2022 survey of AHLA members, 97% said their hotels are understaffed, including 49% severely understaffed.
“We are thrilled to partner with ICHRIE and its outstanding deans, directors, program leaders and members of the major hospitality universities and schools, and work together on our shared mission to strengthen the hotel industry’s talent pipeline,” said Chip Rogers, president and CEO of AHLA. “As the global leader in hospitality and tourism education and research, ICHRIE will help maximize our reach to students and educators across the nation. Together, AHLA, the AHLA Foundation, and ICHRIE will ensure that all Americans preparing to the enter the workforce are aware of the multitude of great hospitality career opportunities available to them.”
As part of the new agreement, effective June 13, 2022, AHLA and the AHLA Foundation will participate in ICHRIE’s 75th Anniversary Conference this August in Washington, D.C. Areas of collaboration will include:
- AHLA’s chief operating officer will serve on ICHRIE’s new Industry Council to help facilitate relationships with key suppliers and service providers
- ICHRIE will distribute AHLA Foundation materials and facilitate access to its membership and communication channels
- The organizations will explore future opportunities to engage hospitality management faculty and students
“The strategic partnership between AHLA, AHLAF and ICHRIE is a game changer for the hospitality industry. It provides ideal opportunities to foster and engage in practice-oriented research, to share and promote best talent practices, to grow talent, to create a more diverse workforce with equal opportunities and to secure a steady flow of highly talented and educated students into the industry now and in the future,” said Dr. Ralf Burbach, ICHRIE President, and Head of Hospitality Management, Technological University Dublin.
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