Hotel stocks dipped nearly 2 percent in August, according to the Baird/STR Hotel Stock Index.

HOTEL STOCKS DIPPED 1.9 percent in August on the Baird/STR Hotel Stock Index, which closed at 4,099 points. More bearishness is expected as the industry’s growth slows from uncertainty about, among other things, the impact of hurricanes Harvey and Irma.

Despite the August decrease, the index was up 10.7 percent for the first eight months of 2017 over last year. The Hotel Brand sub-index decreased 1 percent to 5,885 points from July to August, while the Hotel REIT sub-index fell 3.6 percent to 1,560 points during the month.

Stock market volatility and geopolitical uncertainty were among the reasons for the underperformance last month, said Michael Bellisario, Baird’s senior hotel research analyst and vice president. “Overall industry growth trends remain sluggish, and difficult calendar comparisons in September should lead to anemic growth during the month, which could keep managements’ and investors’ expectations in check after modestly weaker-than-expected fundamentals over the prior few months,” Bellisario said.

STR’s President and CEO Amanda Hite sees “more bearish sentiment around the investment community” resulting from slower performance growth rate. “While hotel demand continued to grow at a healthy clip this summer, we will likely see a negative impact on performance results for Q3 due to the calendar shift around the Jewish holidays (October 2016 to September 2017),” Hite said. “It is also too early to gauge the hotel performance impact of Hurricane Harvey and its aftermath, and the developing situation around Hurricane Irma may add more uncertainty to the industry outlook.”