HOTEL stocks performed sluggishly last week as investors continued to stay on the sidelines. Players were being cautious because political and economic factors continued to dominate sentiment. Fears over a non-renewal of China's most-favoured nation status by the United States, as well as a further rise in US interest rates, combined to cast a blanket of gloom over the stock market. The long Easter break also contributed to weak trading. Given the prevailing mood, brokers expect the market to drift aimlessly in the short term as the market waits for more positive news on the political and economic front. Regal Hotels fell 3.07 per cent to $1.89, despite reporting a growth in its earnings yesterday. The group reported a 30 per cent rise in net profit to $250.1 million for the year ended December 31. The group said that the stock's share price was trading at a discount to its net asset value (NAV), which was evaluated at $4.10 per share as at December 31. Shangri-La Asia rose 4.58 per cent to $11.40. The group had earlier reported a net profit of $428.2 million in its final results. Mandarin Oriental recovered 2.85 per cent to $10.80. This followed announcements that its parent, Jardine Holdings, would de-list from the Hong Kong stock exchange by the end of the year. Hong Kong & Shanghai Hotels rose 4.38 per cent to $11.90.