Shares of Marriot and other hotel chains pushed toward record highs Thursday as investors anticipated that new stimulus checks for millions of Americans and relaxed travel restrictions will lead to more bookings.
Hotel names rode up alongside other consumer discretionary stocks, in turn drawing the Consumer Discretionary Select Sector SPDR Fund up by 1.5% at the close.
Online travel bookings site Expedia rose by 2.1% at end at a record close of $171.08. Marriott tacked on 1.6% to end at $148.83, a third winning session. The stock two weeks ago logged its all-time high of $159.98.
The S&P 500 closed at an all-time high Thursday, the same day President Joe Biden signed off on a $1.9 trillion fiscal stimulus package passed by Congress. With his signature, the government will begin sending $1,400 checks to most Americans with the aim of assisting them until the economy fully recovers.
Some industry watchers have said consumers having more spending money can help the travel sector recover from the coronavirus crisis, but hurdles remain. The pandemic is still not over and millions of Americans are still out of work, they've cautioned.
But COVID-19 case counts "continue to decrease every day," as more people are vaccinated, New York Governor Andrew Cuomo said Thursday as the state lifted its requirement for domestic travelers to quarantine after arrival, effective April 1. International travelers will still be required to quarantine.
Among other travel stocks, Hyatt rose 1.6% and InterContinental Hotels Group added on 0.6%. Hilton had been more than 1% higher intraday before turning lower, ending down by less than 1%.
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