How Have the Hotel Stock Prices Reacted to All this Drama?
The Marriott-Anbang Takeover Tussle for Starwood
Starwood stock performance
Since Starwood’s (HOT) announcement on April 29, 2015, its stock has gained almost 4%. The stock is up by 2% during intraday trading on March 28, 2016, after the new Anbang offer announcement.
HOT saw its biggest gain since 2009 of ~9% on October 27, 2015, with the release of reports of several Chinese companies trying to make a deal with Starwood.
Peer performance
During this same period, all other major hotel chains have lost market value. Marriott International (MAR), one of the prime contenders for the Starwood takeover, has lost 12%. Wyndham Worldwide (WYN) lost ~ 13%, and Hilton Hotels (HLT) lost 18%. Hyatt (H) has been the biggest loser, with a 24% decline in the same period.
Industry performance
The broader market, tracked by the SPDR S&P 500 ETF (SPY), has lost 4% in the period. The Consumer Discretionary Select Sector SPDR ETF (XLY), which invests 14.3% of its total portfolio in the hotel sector, has gained ~2%.
The First Trust US IPO Index ETF (FPX), which invests ~6% of its portfolio in the hotel sector, declined by ~10%. The iShares Russell 1000 Growth ETF (IWF), which invests approximately 3% in the hotel sector, lost ~3%.
This tussle for Starwood’s business is far from over, and we will keep you posted on the key happenings. So, be sure to stay tuned to the Market Realist’s Hotels page for further developments.
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