The Baird/STR Hotel Stock Index measures the performance of the top 20 hotel companies by market capitalization. It includes big hotel chains such as Hyatt Hotels (H), Marriott (MAR), Wyndham Worldwide (WYN), Hilton Worldwide Holdings (HLT), and Intercontinental Group (IHG), among others.
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In January 2017, the Baird/STR Hotel Stock Index rose 0.5% to close at 3,723. The index recorded a great performance in 2016 as well. In the year, the index rose 19.6% to close at 3,702.
In 2016, Hilton saw the largest rise in its stock price at 24.4%. It was followed by Hyatt, which rose 14.7%, and Marriott, which rose 20.2%.
However, YTD as of February 7, 2017, Wyndham stock had outperformed its peers, rising 5.4%. Marriott stock had risen 3.8%, Hyatt had risen 0.96%, and Hilton had risen 0.34% during the same period.
You can gain exposure to the consumer discretionary sector by investing in the iShares Russell 1000 Growth (IWF), which invests ~20.7% in the sector and 0.36% in the hotel industry. Its holdings include 0.08% in Wyndham Worldwide, 0.19% in Marriott International, 0.08% in Hilton Worldwide Holdings, and 0.01% in Hyatt Hotels.
In the next article, we’ll look at Marriott’s profitability.