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Highlights
- After the adoption of Covid Plan B in England, the hospitality sector is bracing themselves for a rough December.
- The sector is in confusion as costs are increasing and bookings for Christmas and New Year parties are getting cancelled.
- According to various club owners, the number of visitors is going down as the new regulations have hit the sector at the busiest time of the year.
After the adoption of Covid plan B in England, the hospitality sector, mainly nightclubs and pub chains, are bracing themselves for a rough December amid Omicron fears and concerns regarding the new covid restrictions. The sector is in confusion while costs are increasing and bookings for Christmas and New Year parties are being cancelled. Appointing more security staff at the entry of nightclubs to comply with the entry rules would lead to an additional burden on them. Pint prices are also on the rise because of the latest restrictions, while other reasons being a hike in energy costs, wage bills, and rising inflationary pressures.
According to various club owners, the number of visitors is going down, and the new regulations coming at the busiest time of the year are bound to hit the clubs and other public places which have the capacity to host large public gatherings. From 15 December 2021, mandatory checks would be implemented on people aged 18 or above at all the nightclubs, unseated indoor venues which can hold a minimum of 500 people, and crowded outdoor venues or events which are attended by a minimum of 10,000 people.
The hospitality sector has been hit the hardest due to the earlier pandemic-related restrictions as well. Let’s take a look at 5 hospitality stocks, which may be impacted by the news.
RELATED READ: Global hospitality businesses stare at losses as Omicron fears endure
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City Pub Group Plc (LON: CPC)
AIM-listed company City Pub Group PLC owns, operates, and manages an estate of pubs. Earlier this year, the company had announced “sizeable expansion pipeline” after coming out of the lockdown. But things might change for it after the Plan B was announced. Its market cap of the stood at £101.79 million as of 9 December 2021. It has given a return of 6.52% to its shareholders in the last one year and its YTD return stands at 10.63% as of 9 December 2021. City Pub Group plc’s shares were trading at GBX 98.00 at 8:03 AM (GMT) on 10 December 2021.
Restaurant Group Plc (LON: RTN)
Restaurant Group plc is a chain of restaurants and public houses based in the UK. The company’s shares sank nearly 6% after Plan B was announced on worries that people won’t be eating out and will be socialising at home.
The market cap of the FTSE250-listed company stood at £661.77 million as of 9 December 2021. It has given a return of 27.14% to its shareholders in the last one year and its YTD return stands at 36.25% as of 9 December 2021. Restaurant Group plc’s shares were trading at GBX 86.30, down by 0.23%, at 8:04 AM (GMT) on 10 December 2021.
Mitchells & Butlers Plc (LON: MAB)
Pub and bar owner Mitchells & Butlers plc is mainly engaged in the management of pubs, bars, and restaurants, along with other activities like property leasing. Last month, its business was looking up after it tied up with Uber Eats which allowed customers to order food from its app.
The market cap of the FTSE250-listed company stood at £1,385.65 million as of 9 December 2021. It has given a return of 2.97% to its shareholders in the last one year and its YTD return stands at 7.03% as of 9 December 2021. Mitchells & Butlers plc’s shares were trading at GBX 232.20 at 8:05 AM (GMT) on 10 December 2021.
RELATED READ: Should you invest in these hospitality stocks ahead of Christmas?
Young & Co.'s Brewery Plc (LON: YNGA)
Young & Co.'s Brewery plc’s market cap of the AIM-listed company stood at £538.45 million as of 9 December 2021. Last month, it reported an increase in the pretax profit for H1 2022 after restrictions were relaxed this year. The company reported that their revenue tripled to GBP149.6 million from GBP52.7 million.
It has given a return of 28.28% to its shareholders in the last one year and its YTD return stands at 20.38% as of 9 December 2021. Young & Co.'s Brewery plc’s shares were trading at GBX 1,565.00 at 8:07 AM (GMT) on 10 December 2021.
Loungers Plc (LON: LGRS)
AIM-listed Loungers PLC’s H1 2022 pretax profit rose on higher revenue due to increased activities at its café bars and restaurants. Its market cap stood at £301.54 million as of 9 December 2021. It has given a return of 25.37% to its shareholders in the last one year and its YTD return stands at 29.34% as of 9 December 2021. Loungers plc’s shares were trading at GBX 293.50 at 8:08 AM (GMT) on 10 December 2021.
