Hotel stocks posted a second consecutive month of gains in June, reflecting renewed investor confidence despite a mixed outlook for summer travel demand.
The Baird Hotel Stock Index, which tracks 20 publicly traded hotel brand companies and real estate investment trusts (REITs), rose 3.7% in June. This builds on a 9.3% increase in May, marking the first back-to-back monthly gains since October and November 2024. Still, the index remains down 3.7% year to date, highlighting lingering challenges for the sector.
Comparatively, broader market trends remained stronger. The S&P 500 climbed 5% in June and is up 5.5% for the year. In contrast, the MSCI U.S. REIT Index (RMZ)—a benchmark for the real estate investment market—declined 1.3% in June, highlighting hotel stocks’ relative resilience within the real estate space.
REITs rise amid mixed results
Within the Baird index, hotel brand stocks led the way with a 4.2% increase, while hotel REITs posted a modest 0.6% rise.
Several hotel-focused REITs posted notable stock rebounds. Summit Hotel Properties jumped 16.2%, followed by Pebblebrook Hotel Trust (up 8.8%) and Braemar Hotels & Resorts (up 7.5%). On the other hand, Sunstone Hotel Investors saw the steepest decline, down 3.1% month over month.
Commenting on the broader picture, Michael Bellisario, Senior Research Analyst and Managing Director at Baird, said, “Hotel stocks continued to rebound in June as the broader market increased and investor sentiment improved. Macroeconomic and trade policy headwinds have moderated further, and worst-case downside scenarios appear unlikely to occur.”
However, Bellisario flagged weak RevPAR (Revenue Per Available Room) trends, citing “weaker inbound international travel and softer leisure transient demand” that have pressured overall industry performance. “Expectations are relatively low for the summer travel season,” he added.
On a year-over-year basis, the performance picture is split. Hilton led gains with its stock up 22.1%, followed by Marriott International (up 13%) and Wyndham Hotels & Resorts (up 9.7%). Conversely, Ashford Hospitality Trust and Park Hotels & Resorts reported steep losses, with declines of 38% and 31.7%, respectively.
Despite macroeconomic improvements, the path forward for hotel equities remains tied to evolving travel patterns and investor expectations for the second half of 2025.
