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Highlights
- UK hospitality businesses are anticipating the cancellation of approximately one-third of the bookings in the Christmas party period.
- This string of cancellations comes at the most terrible time, as December is the month in which hospitality firms generally hope to generate about one-third of their yearly sales.
- UKHospitality has predicted that the strikes by the railway workers would cost companies approximately £1.5 billion in sales losses and other contagion effects.
The hospitality sector, which was among the hardest hit sectors during the pandemic, had high expectations for this holiday season with no COVID-19 restrictions. However, due to a mix of factors, including railway strikes, snowfall and freezing conditions, there has been a string of booking cancellations across the hotels, restaurants, and pubs in the country.
In contrast to the expectations of a trade boom ahead of the peak Christmas period, hospitality businesses are now anticipating the cancellation of approximately one-third of the bookings in the festive period due to the continuing railway strikes. The strikes have pushed travellers and shoppers to stay back at home, in turn clearing out the high streets and offices.
Image source: © Sebcz | Megapixl.com
This string of cancellations comes at the most terrible time, as December is the month in which hospitality firms generally hope to generate about one-third of their yearly sales. Hospitality businesses have been struggling lately due to the skyrocketing costs of food, energy, and labour, all during a time when consumers are squeezing their budgets to tackle soaring inflationary pressures.
The sector’s trade body, UKHospitality, has predicted that the strikes by the railway workers would cost companies approximately £1.5 billion in sales losses and other contagion effects.
Amid these developments, UK investors may keep an eye on the following hospitality stocks trading on the London Stock Exchange.
Compass Group plc (LON: CPG)
The shares of the global contract foodservice firm, Compass Group plc, were trading at GBX 1,901.00 on Monday at around 11:30 AM (GMT). The FTSE100-listed firm’s market capitalisation stood at £33,364.23 million at the time of writing, and its EPS (earning per share) stood at 0.20. As of 19 December, the returns offered by the firm on a yearly and YTD (year to date) basis stood at 22.13% and 15.14%, respectively. The group had a turnover of £5,470,496.08.
InterContinental Hotels Group plc (LON: IHG)
The shares of the prominent global hospitality enterprise, InterContinental Hotels Group plc, were trading at GBX 4,803.00 on Monday at around 11:30 AM (GMT). The FTSE100-listed firm’s market capitalisation stood at £8,417.52 million at the time of writing, and its EPS stood at 1.45. As of 19 December, the returns offered by the firm on a yearly and YTD basis stood at 7.33% and 0.48%, respectively. The group had a turnover of £1,354,242.79.
Hollywood Bowl Group plc (LON:BOWL)
The shares of the global leisure operating firm, Hollywood Bowl Group plc, were trading at GBX 237.50 on Monday at around 11:30 AM (GMT). The firm’s market capitalisation stood at £406.29 million at the time of writing, and its EPS stood at 0.01. As of 19 December, the returns offered by the firm on a yearly and YTD basis stood at 3.20% and -0.42%, respectively. The group had a turnover of £19,848.19.
