Hotel Stock Index Remains Flat in March

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According to the latest Baird/STR Hotel Stock Index, the index itself reported a 0.1-percent increase to 3,253 in March 2014, a slight uptick from 3,177 in December 2013.

Both the MSCI REIT (RMZ) unchanged) and the S&P 500 (+0.7 percent) ended March nearly flat.

"The Baird/STR Hotel Stock Index reported a positive first quarter, rising 2.4 percent," said Randy Smith, chairman and co-founder of STR. "Hotel performance was steady as we closed out the first quarter. Demand reported healthy growth year-to-date February (+3.9 percent), well above last year's growth (+2.2 percent) and above our expected growth for 2014 (+2.3 percent). We are expecting to see the growth rate slow as we hit summer."

"Stocks were relatively flat in March as investors digested earnings reports and companies' 2014 outlooks; hotel stocks underperformed the broader market but slightly outperformed other real estate sectors," said David Loeb, senior hotel research analyst and managing director at Baird. "The interest rate environment and investor confidence remain stable despite tensions overseas and the Federal Reserve's more hawkish commentary mid-month. Fundamentals are on solid footing, and momentum continues to build into the second quarter."