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%.

How Have Hotel Stock Prices Reacted to the Merger News?

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%.

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%.