The coronavirus outbreak, which has taken the shape of a global pandemic, has forced Hyatt Hotels Corporation (H - Free Report) to withdraw 2020 outlook. The company announced that it is rescinding its outlook on earnings sensitivity based on Greater China RevPAR.
The coronavirus outbreak has impacted travel demand in China, North America and Europe. The outbreak — which originated in the city of Wuhan on the banks of Yangtze River, between Shanghai and Chongqing — has so far claimed lives of 3,085 people. Moreover, more than 90,305 have been infected by the virus. The infectious nature of the virus has made it a bigger threat. No wonder, the coronavirus has evoked memories of 2002 SARS epidemic, which also spread across the world in a short span of time.
Mark S. Hoplamazian, president and chief executive officer, said, “This is an evolving situation, and our ability to assess the financial impact of COVID-19 on our business continues to be limited due to quickly changing circumstances and uncertain consumer demand for travel.”
Coronavirus Hurting Hotel Industry
Hyatt, which operates more than 85 hotels throughout Mainland China and Hong Kong, has already closed 26 hotels in China. Other major hoteliers like Wyndham Hotels & Resorts, Inc. (WH - Free Report) , Hilton Worldwide Holdings Inc. (HLT - Free Report) and Marriott International, Inc. (MAR - Free Report) have also been impacted by the coronavirus outbreak.
Per report, Wyndham Hotels & Resorts has shutdown 1,000 hotels in China, which is nearly 75% of its Chinese operations. Moreover, Hilton and Marriott have closed nearly 150 and 90 hotels in the country, respectively.
In the past month, the industry has fallen 13.7%, compared with the S&P 500 decline of 6.3%. Hyatt currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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