How Have Hotel Stock Prices Reacted to the Merger News?



Stock performance

Since the merger received final approval on September 20, 2016, Marriott stock (MAR) fell 2.2%, while Starwood (HOT) stock rose 2.2%. All of the other hotel chains lost value during the same period. Intercontinental Hotel Group fell 5%, while Hyatt (H) fell 2.8%. Wyndham Worldwide fell 0.95%, while Hilton Group (HLT) fell 0.3%.

However, since April 29, 2015, when Starwood first put itself up for sale, all of the hotel stocks have lost value. Wyndham (WYN) is the highest loser— it fell almost 26.5%. Hilton fell 24% and Intercontinental Group fell 21%. Marriott lost almost 18% of its value, while Starwood fell 7%.

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Year-to-date performance

YTD (year-to-date), hotel stock performance is a mixed bag. Starwood emerged as the highest gainer. It rose almost 10% during the period. Hilton rose 6.3%, while Hyatt rose 7.7% during the same period.

All of the other hotels lost value. Intercontinental Group has lost almost 13.4% YTD. Wyndham lost 7.9%, while Marriott lost 1.3%.

The S&P SPDR 500 ETF Trust (SPY) tracks the S&P 500 index. SPY rose 4% YTD. The Consumer Discretionary SPDR ETF (XLY) tracks the performance of the consumer discretionary sector. XLY is flat at -0.2%.


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