Hilton Worldwide Holdings (HLT) - Get Report shares were surging Wednesday, along with other hotel stocks after Congress and the White House reached a deal on a $2 trillion stimulus bill meant to revive an economy stalled by the coronavirus pandemic.
Hilton shares were rising 7.6% to $74.63, Marriott International (MAR) - Get Report was up 11.1% to $87.85, and InterContinental Hotels Group (IHG) - Get Report, owner of Holiday Inn, Crowne Plaza, and other hotel chains, climbed 12% to $40.16. Choice Hotels International (CHH) - Get Report, owner of Econo Lodge, Comfort Inn and other chains, was up 19.4% to $69.52.
Hilton also got a boost when Pershing Square manager Bill Ackman said in a letter to investors that his fund used some of its profits from a market hedge to buy Hilton shares, CNBC reported.
Ackman told investors that the fund completed the exit from his bets against the market on March 23 and generated $2.6 billion compared with premiums paid and commissions totaling $27 million.
“The federal government and the U.S. Treasury have intervened in financial markets in an unprecedented fashion, and the Congress is on the brink of passing legislation which will help bridge the economy and our country’s workforce and citizens during what we believe to be a temporary but massive economic shock,” Ackman wrote.
Beaten-down casino stocks also were rising sharply Wednesday.
MGM Resorts International (MGM) - Get Report was up 8% to $13.15, Las Vegas Sands Corp. (LVS) - Get Report advanced 12.7% to $50.53, and Wynn Resorts International (WYNN) - Get Report climbed 13.9% to $75.78. Caesars Entertainment (CZR) - Get Report rose 17.2% to $7.24.
Cruise-line operators also saw their shares rise dramatically.
The economic relief package, struck shortly before 1 a.m. ET on Wednesday, will include payments to U.S. households and jobless benefits to individuals and aid for small businesses and the travel industry.