Iran conflict causes decline in European and American hotel and cruise stocks

LootboxPhobia · 2026-03-02T17:24:08+00:00

European and American hotel stocks declined due to concerns that the US and Israel's attacks on Iran could impact Middle Eastern tourism, with Accor Hotels' stock plunging 9% and IHG falling 4%. Analysts pointed out that Accor and IHG have significant risk exposure in the Middle East, and rising oil prices are also putting pressure on cruise companies.

LootboxPhobia

2026-03-02 17:24:08

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Investing.com - On Monday, European and U.S. hotel stocks declined as investors worried that attacks by the U.S. and Israel on Iran could impact tourism in the Middle East.

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Accor Hotels, a hotel chain listed in Paris, saw its stock plunge over 9% in early trading, affected by Iran’s retaliatory airstrikes on luxury hotels in Dubai and Bahrain.

InterContinental Hotels Group (IHG) also fell more than 4 in London trading.

Bernstein analysts Richard Clarke and Sabrina Blanc noted in a research report that, in addition to the threat of attacks, these stocks will also be directly affected by the closure of Dubai and Abu Dhabi airports and subsequent flight cancellations.

“Accor Hotels has the greatest exposure to this risk, with about 10% of its rooms located in the Middle East. Due to the higher-end hotel mix, revenue per available room is significantly higher than its overall portfolio,” Bernstein analysts said. The hotel mix refers to the distribution of properties of different quality and price levels within a specific investment portfolio, market, or development project.

“IHG’s exposure is second, but it’s worth noting that the group’s operations in Saudi Arabia carry a larger weight, and Saudi Arabia is less affected than the UAE,” they added.

Analysts pointed out that for U.S. hotel groups, the Middle East accounts for a “relatively small” portion of their total rooms.

Meanwhile, although demand for cruise operators is unlikely to be affected by the Iran conflict, rising oil prices and rerouted routes passing through Gulf countries or North Africa could still have an impact, analysts said.

They added that rising oil prices are expected to put particular pressure on Carnival Cruise Line and Royal Caribbean Cruises. In pre-market trading in the U.S., Carnival’s stock fell 7%, while Royal Caribbean’s stock dropped over 6%.

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