Intercontinental: Oddo's best pick
(CercleFinance.com) - Oddo says that RevPAR figures in Europe were down 36% vs.
(pre-crisis) 2019 in February, a level that is similar to September 2021, after 4 months of continuous deceleration, mainly impacted by the Omicron variant of Covid (especially December/January), penalising occupancy rates.
Prices continue to resist well despite the context, however: in fact they have not been affected (or very little) by the Omicron effects, which reflects pricing power that remains relatively high for the sector, the analyst says.
The US continues to outperform Europe by a big margin and reinforces Oddo's positive opinion of IHG (outperform, TP 5,900p, with the US representing over 60% of its portfolio, especially as this exposure is almost exclusively domestic).
The broker is also positive on Melia (focus on Spain, which will outperform in the key summer months), Whitbread (focus on the UK, also a strong exposure to domestic customers) and Accor (France representing around 20% of EBIT), it adds.
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