Should you invest in these hospitality stocks ahead of Christmas?

Highlights

  • Christmas parties are being cancelled due to fear of the new omicron variant.
  • Hospitality sector is staring at a big crisis ahead of the festive season as big events are either being cancelled or scaled back.

Due to the fear of the new variant of coronavirus, omicron, Christmas parties are being cancelled by offices and organisations, which is turning out to be a big blow to the hospitality sector ahead of the festive season. The new covid strain is speculated to carry a higher risk of re-infections and has thus created a panic situation worldwide leading to higher restrictions again.

Should you invest in these hospitality stocks ahead of Christmas?

As more cases of the new variant are surfacing across the UK, the pubs, restaurants, and other such venues are suffering due to parties and huge events being scaled back. As has been witnessed earlier in lockdown phase of the pandemic, hospitality, travel, and tourism have been the worst hit sectors, which have created a domino effect over the entire economy. These sectors are yet again pleading for financial support to sustain themselves as the situation begins to worsen.

RELATED READ: Should you hold your aviation and tourism stocks?

Here are 5 UK hospitality stocks that may be impacted due to omicron fear.

Alarm bells in the UK over new Covid variant

Source: Copyright © 2021 Kalkine Media

City Pub Group Plc (LON: CPC)

City Pub Group PLC’s current market cap stands at £99.71 million. The group runs a chain of pubs that provides excellent services along with fantastic beer and delicious food. The It has given a return of 7.29% to its shareholders in the last one year and its YTD return stands at 8.14% as of 2 December. City Pub Group plc’s shares closed at GBX 96.50 on 2 December 2021.

Restaurant Group Plc (LON: RTN)

Restaurant Group plc’s current market cap stands at £656.41 million. It has given a return of 21.00% to its shareholders in the last one year and its YTD return stands at 29.79% as of 2 December. Restaurant Group plc’s shares closed at GBX 83.30 on 2 December 2021.

Mitchells & Butlers Plc (LON: MAB)

Mitchells & Butlers plc manages pubs, bars, and restaurants, and is also involved in activities like leisure retailing and property leasing. The current market cap stands at £1,394.01 million. It has given a return of 8.45% to its shareholders in the last one year and its YTD return stands at 3.71% as of 2 December. Mitchells & Butlers plc’s shares closed at were trading at GBX 224.80 on 2 December 2021.

RELATED READ: IHG, Whitbread (WTB) & PPHE: Should you hold these hospitality stocks?

Young & Co.'s Brewery Plc (LON: YNGA)

Young & Co.'s Brewery plc is engaged in operating and managing hotels and pubs in the UK. The current market cap of the AIM-listed company stands at £512.65 million. It has given a return of 26.69% to its shareholders in the last one year and its YTD return stands at 15.00% as of 2 December. Young & Co.'s Brewery plc’s shares closed at GBX 1,500.00 on 2 December 2021 (GMT).

Loungers Plc (LON: LGRS)

Loungers PLC operates café bars and restaurants. The current market cap of the AIM-listed company stands at £285.61 million. It has given a return of 27.85% to its shareholders in the last one year. Loungers Plc’s shares closed at GBX 278.00 on 2 December 2021.

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