Intercontinental: Oddo still steering clear

(CercleFinance.com) - RevPAR in Western Europe is down 76% over the year (STR figures), almost in line with January's 79% fall and December's 78% drop.
Occupancy rates are naturally very low at 21%, although are slightly up relative to January at 17% (62% in February 2020).

Year-to-date RevPAR is down 78%, a fall that is bang in line with that of Q4 2020. Analysts expect a decline of around 60%/70% in Q1. Overall, they remain cautious on the hotel sector in the current situation, even though newsflow should gradually improve, Oddo said.

Analysts remain positive on Accor and Whitbread, with Outperform ratings (due to the heavy exposure to local customers and balance sheet strength), and are also more constructive on Melia (Neutral), they add.

However, the broker remains negative on NH and Scandic, given the focus on business demand and the fragility of balance sheets, in addition to Intercontinental, mainly due to the valuation, which the broker finds particularly constraining in the current context.

The Intercontinental share is down 1.3% in late morning trading on Monday.



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