The Baird/STR Hotel Stock Index rose 1.6 percent in November, trailing the S&P 500, which rose 1.8 percent, and the MSCI US REIT Index, which grew 4.4 percent.

WALL STREET’S SOMEWHAT bearish market took its toll on the Baird/STR Hotel Stock Index in November, according to STR. The index rose 1.6 percent that month, a modest gain, and remained down 9 percent year to date.

The index fell behind the S&P 500, which rose 1.8 percent, and the MSCI US REIT Index, which saw a 4.4 percent increase. The Hotel Brand sub-index increased 2 percent from October while the Hotel REIT sub-index jumped 1 percent.

Several factors slowed trade on the index somewhat, said Baird Vice President and Senior Hotel Research Analyst Michael Bellisario.

“The hotel REITs underperformed their broader real estate benchmark, while the hotel brands were slight relative outperformers,” he said. “Stock market volatility moderated in November, but interest rates moved lower and macroeconomic growth concerns remained. As a result, investors positioned more defensively, which negatively impacted the hotel stocks’ performance during the month, particularly the hotel REITs.”

While the fundamentals of the industry remain strong, the hotel stock index may continue to perform erratically due to other influences, said STR President and CEO Amanda Hite.

“Record-breaking demand continues, and RevPAR growth returned in October after a one-month hiatus,” she said. “However, macroeconomic jitters, fears of a trade war with China and uncertainty about the Brexit deal all seem to be weighing heavily on investors’ minds. Our assessment of the industry remains unchanged though—U.S. hotel performance is healthy, and we expect that to continue in 2019.”