Weaker demand, lower occupancy levels and higher labor costs drove hotel stocks down in September, according to World Property Journal.
The Baird/STR Hotel Stock Index for September lagged behind the performance of both the S&P 500 (-0.1%) and the MSCI REIT (RMZ) (-2.5%). Meanwhile, The Hotel Brand sub-index reported a 4.6% decrease to 4,166 in September. The Hotel REIT sub-index declined 10.2% to 1,382 during the month.
David Loeb, a senior hotel research analyst and managing director at Baird told The World Property Journal that “Top-line growth remains sluggish, especially in urban markets, and bottom-line results are being pressured due to higher customer acquisition costs and higher labor-related expense items, both of which set up 2017 to be another slow-growth year.”