The Baird/STR Hotel Stock Index, a co-branded index created by Robert W. Baird & Co. (Baird) and STR, which is comprised of 15 of the largest publicly traded hotel companies by market capitalization, has declined 9.39% over the past month.
The index closed the month of June down 3.2% as "somewhat volatile economic conditions and political instability around the world continue to be the potential Achilles' heel for the hotel industry," according to STR chairman Randy Smith.
Here are is a breakdown of some of the top stocks in the sector:
Starwood Hotels (HOT) shares are down 0.4% to $76.55 today. The company introduced the new premier Sheraton Grand tier of hotels at 10 Sheraton locations across the world today. The company said that it expects to have 50 newly designated Shearton Grand Hotels open by the end of the year and 100 by early 2017.
TheStreet's chartist Bruce Kamich pointed out that the Starwood Hotels chart shows that the stock broke support at $80 and is trading below its flat 200-day moving average
Source: Big Charts
Hyatt Hotels (H) shares are down 0.32% to $52.70 today, two weeks after the company reported a lower-than-expected quarterly profit of $40 million, or $0.28 per share. Analysts on average were expecting the company to report earnings of $0.48 per share.
Hyatt Hotels chart shows that the stock broke support at $55 and the 200-day moving average is downward sloping.
Source: Big Charts
Marriott International (MAR) shares are down 1.06% to $71.61 in trading today. The company recently declared a quarterly cash dividend of $0.25 per share payable Sept. 25 to shareholders of record on Aug. 20.
Marriott International's chart broke the 200-day moving average and a "kickback" rally to the underside of the 200-day average failed.
Source: Big Charts
Hilton Worldwide Holdings (HLT) shares are down 0.62% to $25.68 in morning trading today. Today the company announced that the Admiral Hotel Mobile building in Mobile, Ala., will be joining its portfolio of upscale business district luxury properties know as Curio. The announcement comes one day after the company announced the first Midwestern hotel to join its Curio brand, the Hotel Alex Johnson in South Dakota.
Hilton Worldwide's chart shows that the stock broke its 200-day moving average.
Source: Big Charts
Marriott Vacations Worldwide (VAC) shares are down 2.9% to $75.58 in trading today. The timeshare and vacation ownership branch of Marriott beat analysts' quarterly earnings forecast three weeks ago when it reported an EPS of $0.82 per share that was one cent better than analysts had forecast. Revenue for the period fell below expectations, however, with the company generating $3.69 billion in revenue versus analysts' consensus $3.72 billion expectations.
Marriott Vacations' chart shows that the stock broke its 200-day moving average and broke support at $80.
Source: Big Charts
While Starwood Hotels could be close to a recovery bounce, the bigger question might be what is the poor performance of these names saying about the travel industry specifically and the economy as a whole.
-- By Tony Owusu and Bruce Kamich
