Baird Projects Tariffs to Negatively Impact New Construction
Skift Take
If a "Trump Slump" materializes for a long stretch, analysts at Trust and Baird speculate about what it might mean for the hotel sector.
The DJIA was down 349 points, the Nasdaq was up 15, the S&P 500 was down 12 points and the 10-year treasury yield was up .17 to 4.16%. If you take out the big move in the 10 year, it almost looked like a normal day but there was a whole lot of volatility in there. Lodging stocks were lower but the list of big movers was much shorter, which is a good thing. We won’t even bother with the new 52-week lows list until the world gets back to normal, or something close to normal. SVC was down another -7% while BHR, PEB and SOND fell -6% on the day.
Truist took a crack at what all this uncertainty means for the U.S. hotel sector, saying every lodging cycle is distinct but said assuming this is another demand slowdown for the hotel/travel industry, what they are calling the “Trump Slump” could create a stagflation environment which could have a distinct impact on the hotel sector.
Baird sa
