Why Hotel Stocks Plunged Double Digits on Monday
Shares of hotel brands plunged again on Monday as the COVID-19 reaction has started shutting down travel across the world. Marriott International's (NASDAQ: MAR) shares were down as much as 18.3% in early trading, Hyatt Hotels (NYSE: H) dropped 20.1%, and Hilton Worldwide Holdings (NYSE: HLT) shares were down 18.8%. Shares of each company recovered some of those losses throughout the day and at 2:40 p.m. EDT were down 7.4%, 9.6%, and 10.7% respectively.
There are multiple layers to the news today, but the EU has proposed a ban on non-essential travel to Europe, the U.S. is already limiting travel from Europe, and airlines are cutting capacity to keep from flying empty airplanes. Hotels are downstream from the airline industry, but if people aren't traveling they aren't staying at hotels, so there is going to be a big impact on hotel brands.
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Source Fool.com
