In the US, the Baird/STR Hotel Stock Index dropped 11.5 percent this October.

“Hotel stocks were underperformers in October and significantly lagged behind their respective benchmarks,” said Michael Bellisario, senior hotel research analyst and VP, Baird.

“The broader stock market sell-off, investors shifting their focus from growth to value, and both the hotel brands and REITs not producing better-than-expected third-quarter earnings and fourth-quarter guidance were all factors that caused hotel stocks to have their worst month since January 2016.”

STR reassured investors that the US hotel industry is still going along at a steady pace, although growth has appeared to have slowed.

“Even as the U.S. hotel industry continues its record-breaking run, the data points to us being closer to a point of softening performance rather than a point of acceleration. RevPAR is still growing, the one month decline in September notwithstanding, and our forecast for 2019 points at more positive performance,” said Amanda Hite, president and CEO, STR.

“However, growth rates are indeed slowing, and while new supply is not a major factor nationally, it is dampening pricing power in certain markets and likely will continue to put a governor on RevPAR growth.”