The performance of the Baird/STR lagged behind both the S&P 500 and the MSCI US REIT Index, which grew 1.8 percent and 2.7 percent respectively.

THE BAIRD/STR Hotel Stock Index fell 0.9 percent in March to 4,642. The drop comes a month after a 6.8 percent increase in February.

The index was up 14.1 percent year to date through the first three months of 2019. The performance lagged behind both the S&P 500 and the MSCI US REIT Index, which grew 1.8 percent and 2.7 percent respectively.

Both sub-indices in March finished down slightly and hotel stocks under-performed compared to their respective benchmarks, said Baird Vice President and senior research analyst Michael Bellisario.

“Industry fundamentals year to date have been a bit below the recent trend line, and, as a result, hotel stocks’ upward momentum slowed in March despite the broader stock market continuing to move higher,” Bellisario said.

The Hotel Brand sub-index recorded a 0.4 percent increase, while the Hotel REIT sub-index dropped 1.9 percent to 1,593.

“It is not a surprise to see investors a bit more bearish than in recent months as U.S. RevPAR continues to grow with even less momentum than expected,” STR’s President and CEO Amanda Hite said. “The situation will be a bit tricky over the next month or so as the Easter calendar shift affects group business and overall performance comparisons with last year. One constant we do expect for the next several months is strong performance growth in San Francisco, in comparison with a low base last year, lifting overall U.S. numbers.”