From techs to this? Online Travel, Hotel, Casino Stocks Plunge
LOS ANGELES (Reuters) - Leading hotel, casino and online travel companies lost nearly $10 billion in market capitalization on Monday, as investors dumped shares over concerns about a looming slump in business and leisure travel following last week's hijackings and attacks.
ADVERTISEMENT
Online travel agents were hit the worst, with two leading firms, Sabre Holdings Corp. (NYSE:TSG - news), operator of the Travelocity Web site, and Expedia Inc. (NasdaqNM:EXPE - news) shedding 40.9 percent and 33.8 percent of their market value, respectively.
The losses easily outpaced a 4.9 percent drop for the benchmark S&P 500 index and a 6.8 percent drop for the Nasdaq index at the close of trading on Wall Street.
Sabre shares fell $16.13 to close at $23.30 and Expedia shares dropped $12.25 to $24, resulting in a combined loss of $2.7 billion in market capitalization.
The hotel industry was the next hardest hit, with the sector's top three companies -- Marriott International Inc. (NYSE:MAR - news), Hilton Hotels Corp. (NYSE:HLT - news) and Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT - news) -- losing a combined $4.8 billion in market capitalization.
Among the three, Starwood's shares were down the most on a percentage basis, down 28.4 percent, or $8.40, to $21.15. Hilton shares closed down $2.64, or 23.6 percent, to $8.55, and Marriott shares lost $8.60, or 21.1 percent, to $32.25.
Gaming company shares were also down sharply amid uncertainty about the future for the leisure travel industry.
The nation's top four gaming stocks -- MGM Mirage (NYSE:MGG - news), Mandalay Resort Group (NYSE:MBG - news), Harrah's Entertainment Inc. (NYSE:HET - news) and Park Place Entertainment Inc. (NYSE:PPE - news) -- lost a collective $2.4 billion in market capitalization during the trading day on Wall Street.
MGM Mirage shares were down the most, losing $6.31, or 22.3 percent, to trade at $22. Mandalay shares were down $4.90, or 20.5 percent, to $19; Park Place shares were down $1.92, or 19.4 percent, to $8; and Harrah's shares were down $4.11, or 14.3 percent, to $24.60. |
