- Casino, Hotel

Hotel, Casino Stocks Drop on Concerns

7/3/2002 (By LOS ANGELES (Reuters)) Shares of lodging and casino companies moved broadly lower on Tuesday, some losing as much as six percent, as investors fretted over what impact a new terror attack staged over the July 4 holiday weekend could have on travel-sensitive sectors.

Shares for most major hotel and casino companies were down anywhere from three to give percent midway through the trading day, outpacing a 1.8-percent drop in the broader S&P; 500 and a near one percent drop in the Dow Jones industrial average.

Among the major casino companies, Park Place Entertainment Inc. was down 49 cents, or 5 percent, to $9.37; Mandalay Resort Group was down $1.21, or 4.5 percent, to $25.45; Harrah’s Entertainment Inc. was down $1.95, or 4.4 percent, to $42.55; and MGM Mirage was down $1.06, or 3.3 percent, to $31.40.

Among the major hotel companies, Four Seasons Hotels Inc. was down $2.35, or 5.1 percent, to $43.45; Hilton Hotels Corp. was down 65 cents, or 4.8 percent, to $12.94; Marriott International Inc. was down $1.25, or 3.4 percent, to $35.55; and Starwood Hotels & Resorts Worldwide Inc. was down 99 cents, or 3.1 percent, to $30.46.

Much of the sell-off stemmed from investor fears about the potential for a new attack during the July 4 holiday, said Bear Stearns analyst Eric Hausler.

Such an attack could send a chill through the travel industry like the one that saw business at the nation’s hotels and casinos plunge in the weeks after Sept. 11, he said.…