Underwriters may view the primary issue of most hotel and casino stocks as more risky than stocks of new companies generally. Still, newly issued stocks of hospitality companies have generally outperformed the market in their first year.
Canina, L. (1996). Initial public offerings in the hospitality industry: Underpricing and overperformance. Cornell Hotel and Restaurant Administration Quarterly, 37(5), 18-25.Retrieved [insert date], from Cornell University, School of Hospitality Administration site: http://scholarship.sha.cornell.edu/articles/673/