Brussels attacks bring down European hotel stocks


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.

Virtual Event


Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.

“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.”

Suggested Articles

The hotel will implement a new, branded mobile app that delivers control to guests and GEMS, a back-office tool that streamlines operations.

The U.S. is now the only region that has yet to turn a positive month of profit since the COVID-19 pandemic took hold.

While occupancy largely was flat week over week during the seven-day period ending Sept. 19, rate and revenue both declined.