Whitbread: Oddo still a buyer

(CercleFinance.com) - Oddo highlights a 50% y-o-y drop in RevPAR in August in Europe after three months of almost no revenue for hoteliers.

This is a sequential improvement compared to -62% in July and -80/-90% between April and June.

In cumulative performance, and since the beginning of 2020, RevPAR has fallen by 59% in the region, compared with flat growth at the end of February. Occupancy rates vary between -41% and -52%, but average prices are quite different by country, with a drop of only 5% in Germany against -27% for the United Kingdom, Oddo says.

Oddo says that it remains convinced that in the recovery phase, it is profiles that are exposed to local demand, and in the conomy/intermediate segments (given down trading) that will do best. Analysts add that they still prefer Whitbread (Buy) and Accor (Buy).

However, the market doesn't seem to agree - at least for today - the Whitbread share is down over 4% just before midday on Friday.


Copyright (c) 2020 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.