Monday, June 22, 2020

Why MGM Resorts, Park Hotels & Resorts, and Marriott Stocks All Dropped Today

Here is the article.

This sounds like great news, but has the coronavirus been cured and no one thought to mention it? Has a vaccine against COVID-19 been discovered, run through phase 3 trials, and proven both effective and safe for people to take? And most pertinently, has hotel occupancy climbed past the 32% level marked in May, and reached the 37% occupancy level required for most hotels to at least break even -- much less earn a profit from their business?  

Of course, those things haven't happened. Until they do, I have to assume that Marriott, MGM, and Park are still losing money -- and investors still have plenty of reason to sell.

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