Today's terrorist attacks in Brussels—three explosions that have claimed the lives of more than 30 people so far—had a rippling effect with bands now reaching into European hotels and their stocks.
According to Bloomberg, shares of European hotel companies fell after the Tuesday morning explosions.
From Bloomberg: The Bloomberg Europe Lodging Index, composed of the seven leading lodging stocks, fell as much as 4.1 percent, the most since Feb. 11. Accor SA the continent’s biggest hotel operator, led declines, dropping as much as 6 percent to 37.63 euros, also the most since Feb. 11. Intercontinental Hotels Group Plc declined as much as 3.3 percent. The lodging index has declined about 11 percent since Nov. 12, the day before attacks in Paris left 130 people dead.
“The affect of any cancellations probably won’t be felt immediately, but instead will play out in coming months as and when people who may have been thinking of travelling to Europe change their minds and simply don’t book,” Tim Craighead, a research director at Bloomberg Intelligence, wrote to Bloomberg in an e-mail. "The summer holiday period will be key."
Airlines are also feelng a pinch. Airline stocks across Europe fell by between 2 percent and 5 percent, according to CNN. This includes carriers such as Air France KLM (AFLYY), British Airways operator IAG and Deutsche Lufthansa (DLAKF). Airport operators in Frankfurt and Paris were about 3-percent lower.
American Airlines (AAL), Royal Carribbean Cruises (RCL), Carnival (CCL), Marriott (MAR), Priceline (PCLN, Tech30), United (UAL), Expedia (EXPE) and TripAdvisor (TRIP) were all off about 2 percent each.
"The stock reaction is reflecting a cautious attitude from investors after the attack,’’ Pierre Mouton, who manages about $9 billion at Notz, Stucki & Cie. in Geneva, told Bloomberg. “While it may put some investors off Europe because of the perception of increased geopolitical risk, I don’t see it as weighing long term on stocks, beyond the initial reaction.”