U.S. Hotel Stock Tracking Index Up Double-Digits in First Quarter of 2012

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The Baird/STR Hotel Stock Index ended March with a 4.8% increase and ended first-quarter 2012 with a 19.7% to 2,424. The index ended 2011 at 2,025.

The Baird/STR Hotel Stock Index outperformed both the MSCI REIT (RMZ) (+4.7%) and the S&P 500 (+3.1%). The RMZ ended the quarter with a 9.8% increase, and the S&P 500 ended with a 12.0% increase.

"The Baird/STR Hotel Stock Index started the year off strong compared to 2011, illustrating the restored confidence in the hotel industry," said Randy Smith, chairman and co-founder at STR. "Even up against tough year-over-year comparisons, the industry's metrics are stable. There is still a long way to go, but we remain hopeful the industry will continue to strengthen."

"After pulling back a bit in mid-February, hotel stocks continued their upward trend since bottoming in early October last year," said David Loeb, senior hotel research analyst and managing director at Baird. "Demand trends have remained robust and investors are looking to the stronger second and third quarters to gauge the strength of the recovery."

Robert W. Baird & Company and STR partnered to create the Baird/STR Hotel Stock Index--the first widely available U.S. hotel stock index in the hotel industry.