Worldwide: Multiple global hotel companies saw their stocks rise following the announcement of significant development on the COVID-19 vaccine.
Pfizer announced yesterday that its developing formula, based on brand new mRNA technology, was seeing a 90 per cent effectiveness rate in phase 3 trials.
As a result, hospitality stocks saw growth on both the London and New York Markets. This is in line with the remainder of the market, with the Dow Jones Industrial Average growing by 1,500 points at the open of trading.
Global conglomerates, such as Mariott, Park Hotel & Resorts and IHG, were some of the best performers, growing by 21, 40 and 11 per cent respectively. The performance improvement also applied to OTAs, with Expedia, owner of Vrbo, up 22.5 per cent.
In spite of this, some investors are urging limited caution, noting that the pandemic still creates significant certainty. Deutsche Bank has kept Mariott at a hold, urging investors to neither buy nor sell.
Others, however, have seen the news as a smart time to re-diversify portfolios in COVID-affected industries. While hotels and airlines performed well, real estate and financial services were the strongest performers on the European Stoxx 600 index Tuesday morning.
David Baillin, chief investment officer at Citi Private Bank, told CNBC: “Your hotel stocks, casinos, airlines, all of those really are … now back in play.”
Positive hospitality and tech performance may also spell good news for Airbnb, who hopes to go public this week. Their IPO promises to be one of the largest of the 2020 calendar year.