Why Hard-Hit MGM Stock Has Bounced Back a Bit

The impact of the coronavirus crisis over the past two months on the hotel industry has been well documented as occupancy rates have plummeted and hotels have had to furlough workers and temporarily close locations.

The American Hotel and Lodging Association (AHLA) spelled out the grim facts last week. Based on current occupancy (which is below 20% in many major cities) and near-term occupancy estimates, AHLA says 4 million jobs either have been or will be lost in the next few weeks.

MGM Resorts International (NYSE: MGM) has been hit as hard as any, announcing on March 16 that it was temporarily closing all of its casino resorts in the U.S., including its properties in Las Vegas; Detroit; Mississippi; Springfield, Massachusetts; and National Harbor, Maryland, among others. The company's stock price plunged 34% on the news on March 16.

Source Fool.com