Earnings Reports and Interest Rates Spook Investors
Skift Take
- Lodging stocks were down before the Fed decision to raise interest rates by another 75 basis points and conference call but the selling accelerated after, led by the REITs, not surprisingly.
- Investors did not take the earnings reports from Airbnb, Ashford Hospitality Trust or Xenia Hotels & Resorts very well.
- Meanwhile STR reported for the week ended 10/29, US hotel RevPAR was up 33.5% year over year.
There are two things that are a near certainty these days in the stock market. The first is the market has a really good chance of being up on Fridays and will crater during and especially after Fed Chief Powell holds his press conference. The DJIA ended the day down 505 points while Nasdaq was down 366, the S&P 500 fell 96 points and the 10 year treasury yield was up .01 to 4.06%. Lodging stocks were down before the Fed decision to raise interest rates by another 75 basis points and conference call but the selling accelerated after, led by the REITs, not surprisingly. The worst of it was felt by SLNA, down another -37% to a new all time low price the SPAC that bought them never saw. AHT was down -15%, XHR was down -14%, ABNB was down -13% while BHR and SOND fell -8% each. There was a long list of lodging stock declines at 5% or more but these were the bigger decliners.
Investors did not take the earnings reports from Airbnb, Ashford Hospitality Trust
