Accor: a best pick for Oddo in its sector
(CercleFinance.com) - Oddo points out this morning that the European hotel industry is picking up once again after a sharp deterioration in September.
RevPAR in Western Europe was down 24% in October (compared to pre-crisis 2019), compared to a 35% decline in September and 19% in August, the analyst said.
From these figures, we note that i/ even more than in previous years, the summer back-season is longer this year (positive health context at the end of the summer, favourable weather conditions), still boosting hotel demand in leisure destinations; ii/ the first developments in corporate demand seem to be rather good in this context, as October was more "corporate" than September, so it would seem that it is strengthening while the health context is worsening (particularly in Germany), Oddo says.
We prefer groups with strong profiles and local demand (leisure/corporate) exposures. October's figures confirm its preference for profiles that are exposed to leisure demand (Melia - Outperform) and those exposed to local corporate demand (notably mid-market/economy, Accor, Whitbread and IHG - Outperform), the broker adds.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.