Hospitality groups see stocks rise on back of roadmap announcement

By James McAllister

- Last updated on GMT

Hospitality groups see stocks rise on back of roadmap announcement

Related tags: Stock, Share price, The restaurant group, ssp, Wetherspoon, Coronavirus

Hospitality groups including The Restaurant Group (TRG) and SSP have seen their stocks rise following the announcement by Boris Johnson that hospitality could unlock from 17 May.

Shares in TRG rose 10p (9%) on the back of the announcement to 111.5p, while SSP Group saw its stock soar 53.5p (17%) to 368.5p.

Pub group JD Wetherspoon saw its shares rise 3%, and stocks in Beefeater and Brewers Fayre operator Whitbread rose by 4%.

Prime Minister Boris Johnson set out his roadmap for easing lockdown restrictions in England​ on Monday (22 February).

He confirmed that restaurants, pubs, hotels and B&Bs will be able to reopen for dine-in guests from 17 May 'at the earliest' under a four-stage plan for lifting restrictions in England.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said the roadmap to reopening had accelerated the recovery in hospitality and travel stocks with fresh since after the markets opened yesterday (23 February).

“The palpable sigh of relief that there is a date to target for struggling pub and restaurant chains, has translated into a share price rally for the sectors,” she said.

“Restaurants and bars who poured money into providing outdoor dining, may start to see more return on their investment given customers can return to exterior spaces from April 12th.”

Streeter added that many innovative solutions like pop-up waterproof booths, terraces on parking spaces and retractable awnings have been mothballed, despite high hopes they would help lure in customers during winter months.

"Many of these creative endeavours have gone to waste during lockdowns, but could still come into their own as restrictions ease,” she said.

Related topics: Business

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