DUBAI: The coronavirus outbreak has affected every sector across the globe, but the hotel industry is among the hardest hit. Five of the world’s largest hotel chains lost a whopping $25.2 billion in market cap amid the Coronavirus pandemic, according to an expert.
Although hotels implemented increased safety and sanitation measures and cautiously reopened for the summer travel season, recovery to pre-Covid-19 levels could take years.
According to data presented by StockApps.com, the combined market capitalization of Wyndham Hotels and Resorts, Choice Hotels International, Marriott International, Intercontinental Hotels Group, and Hilton Worldwide Holdings, as the five largest hotel chains in the world, hit $79.2 billion in September, a $25.2 billion plunge since the beginning of 2020.
Marriot International Witnessed the Biggest Market Cap Drop in 2020
To curb the spread of the virus, countries across the world have imposed lockdown rules, leading to thousands of canceled vacations, and closed hotels between March and May. Although many of them lifted off travel restrictions in the last three months, the first two quarters of the year produced colossal revenue and market cap drops to the largest hotel chains globally.
The market cap of Wyndham Worldwide, the biggest hotel chain in the world by the number of hotels, stood at $5.89 billion in December, revealed the Yahoo Finance data.
By the end of March, this figure dropped to $2.93 billion. Although the second and third quarter of 2020 brought a recovery, the combined value of stocks of the U.S. corporation, which owns 8,092 hotels, stood at over $5 billion in September, an $870 million plunge since the beginning of the year.
The second-largest hotel chain globally, Choice Hotels International, lost $440 million in market capitalization amid the coronavirus crisis.
However, statistics indicate that Marriot International, the third-largest hotel chain with 5,974 hotels in more than 110 countries, witnessed the most significant drop in market capitalization since the beginning of the year.
In December, the combined value of stocks of the Washington-based corporation stood at $49.51 billion. By the end of the second quarter, it halved to $24.25 billion. Although the company’s market cap recovered to $33.86 billion in September, this figure still represents a 31% plunge since the beginning of 2020.
Intercontinental Hotels Group ranked as the fourth largest hotel chain globally, with 5,070 hotels across nearly 100 countries. Statistics indicate the market capitalization of the British multinational hospitality company amounted to $12.3 billion in December 2019.
After falling to $6.2 billion in March, it rose to $9.7 billion in September, a 21% plunge amid the coronavirus crisis.
The total value of Hilton Worldwide Holdings stocks, the fifth-largest chain of hotels globally, dropped by $5.66 billion since the beginning of 2020. In December, the market cap of the hotel group that generated around $9.45 billion in revenue last year stood at $30.94 billion.
After a sharp drop caused by the Black Monday crash, it recovered to $25.28 billion in September. Nevertheless, the figure represents an 18% fall since the beginning of the year. Statistics show two hotel groups lost $8.3 billion in combined market capitalization amid the coronavirus crisis.
