Hotel shares fall on recession fears
NEW YORK (Reuters) - Hotel companies shares fell on Friday, led by a 5 percent drop in Marriott International Inc (MAR.N), on fears the U.S. economy was headed toward a recession.
"The lodging group is very sensitive to sentiment around whether or not the U.S. is going to be in a recession," said Smedes Rose, an analyst with Keefe, Bruyette, & Woods. "Today, the sentiment is that the U.S. is going to be in a recession."
In addition to the slowing U.S. economy, recent data on the hotel industry show a softening in the sector's performance, said Robert LaFleur, an analyst with Susquehanna Financial Group.
The Dow Jones US hotels index .DJUSLG was down 3.9 percent in afternoon trading.
Marriott fell 5.4 percent to $32 in midday trading. Starwood Hotels & Resorts Worldwide Inc (HOT.N) dropped 4.2 percent to $47.39. Wyndham Worldwide Corp (WYN.N) slipped 2.5 percent to $25.78.
(Reporting by Chris Reiter; /Andre Grenon)
