Hotel Chain Booms After Obama's Cuba Announcement
President Obama's historic announcement today that the US would restore full diplomatic relations with Cuba will have serious repercussions for American business and real estate interests. But the move has already been a boon to Western Europe's biggest hotel chain by revenue.
Bloomberg reports that Melia Hotels International stock surged by 5.6% by the end of trading in Madrid for its biggest gain in 18 months. Melia operates 27 hotels in Cuba, making it the chain's largest market outside of Spain and Germany.
Other instant winners in the US-Cuba thaw include Hertzfeld Carribean Basin Fund, a $34M closed-end fund whose stock spiked as much as 49% on account of its 60 securities holdings that could benefit from the diplomatic measure. Reuters reports that cruise line operators also saw big boosts today.
The mutual hostility between Cuba and the US dates back more than 50 years to some of the chilliest days of the Cold War. Obama made his announcement after the island nation released an American contractor it had held in prison for five years.