BAIRD/STR INDEX DECLINES BY 2.4 PERCENT IN OCTOBER

THE BAIRD/STR HOTEL Stock Index dropped 2.4 percent to 5,600, influenced by increasing interest rates affecting both real estate stocks and investor
sentiment, according to STR. Moreover, U.S. hotel demand saw a 1.3 percent decrease in October, linked in part to a calendar shift.

This marks the third consecutive month of stock decline after a surge in July.

“Hotel stocks declined for the third straight month in October, aligning with broader market trends,” said Michael Bellisario, senior hotel research analyst
and director at Baird. “Elevated interest rates continued to drive performance, with real estate stocks bearing the brunt. Hotel REITs stood out as relative
outperformers. The global hotel brands experienced a roughly 2 percent decrease, closely mirroring the S&P 500’s retreat in October.”

In October, the Baird/STR Index fell behind the S&P 500, down 2.2 percent, but surpassed the MSCI US REIT Index, down 4.5 percent.