Lodging Stocks Tumble Amid Uncertainty for the Hotel Industry
Skift Take
Various analysts and media sources are taking a stab at what this whole tariff situation will mean to the lodging space.
The ugly statistics today included a drop of 1,679 points, or 4%, for the DJIA, 1050 points, or 6%, for the Nasdaq, 274 points, or 5% for Nasdaq but at least the 10-year treasury yield is one more lousy day like this from dropping below 4%, with the yield dropping .14 to 4.06% today. Lodging stocks were crushed, with the worst of it felt by SVC, INN, and VAC, down -20 %, -16%, and -14 %, respectively, while RLJ, PK, CLDT, TNL, PEB, and XHR each were down -11 %.
Various analysts and media sources are taking a stab at what this whole tariff situation will mean to the lodging space. Everything from a slowing of new supply (which makes the most sense) to a big impact on travel is being trumpeted, adding fuel to the dumpster fire in lodging stocks that is showing declines even worse than the market averages. Some are predicting new hotels will cost 10% to 15% more with the same true for renovations
