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Hotel stock index closes 2019 up 29.5 percent

The index jumped 6.1 percent to 5,270 in December

AS 2019 CAME to an end, the Baird/STR Hotel Stock Index jumped 6.1 percent to 5,270, leading to a total 29.5 percent increase in the index for the entire year.

December’s Baird/STR index surpassed both the S&P 500 and the MSCI US REIT Index, which increased 2.9 percent and dropped 1.3 percent respectively. The hotel brand sub-index rose 7.1 percent from November to 8,605 while the hotel REIT sub-index increased 3.7 percent to 1,529.


“Hotel stocks ended the year on a positive note, and both the hotel brands and the hotel REITs outperformed their respective benchmarks in December,” said Michael Bellisario, Baird’s vice president and senior hotel research analyst.

December was a case where stock performance seemed aligned with industry metrics, said STR President Amanda Hite.

“December data is expected to provide a bit of a relief from the otherwise anemic growth rates the industry posted throughout the year. That said, we do not expect one month to materially change the trajectory of year-end results as RevPAR growth should come in around the expected sub-1 percent level,” Hite said. “Regardless, the industry posted another record year with regards to rooms available, rooms sold and rooms revenue. Likewise, absolute ADR and RevPAR are at their highest levels ever. We’re not currently projecting much of a change in either direction for 2020 as slower growth is the name of the game as we enter the 13th year of the RevPAR upcycle.”

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HIRE Act reintroduced amid H-1B fraud allegations

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  • Krishnamoorthi reintroduced the HIRE Act, proposing to raise the H-1B cap to 130,000.
  • The proposal would help fill tech and defense gaps, fund STEM education.
  • Doubling the cap could boost Indian H-1B approvals if the system is fair, an expert said.

INDIAN-ORIGIN U.S. REP. Raja Krishnamoorthi recently reintroduced legislation proposing to raise the H-1B visa cap to 130,000 amid new fraud allegations against the program. Experts estimate the increase could create 45,000 to 50,000 additional opportunities for Indian professionals, though political uncertainty persists.

The Halting International Relocation of Employment Act would raise the annual H-1B cap from 65,000 (plus 20,000 for advanced degree holders) to 130,000, according to The Times of India.

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