Investing.com — JPMorgan analysts have turned bullish on European hotel stocks, signaling optimism for the sector as demand normalizes.
The brokerage has upgraded two key names, Accor (EPA:ACCP) and Whitbread (LON:WTB), to “overweight” from “neutral,” citing strong fundamentals, positive catalysts, and relative undervaluation compared to peers.
Accor’s upgrade reflects confidence in its ability to capitalize on resilient travel trends and improved execution.
The company’s diversified geographic presence and emphasis on high-end segments position it for above-peer revenue per available room growth.
Upcoming events, such as the potential disposal of its remaining stake in AccorInvest and a leadership transition, are seen as likely to unlock further shareholder value.
Whitbread also stands out as a top pick, with JPMorgan flagging its disciplined capital allocation and promising long-term strategy.
The group’s ongoing asset growth program and efficient cost management are expected to enhance profitability. Its domestic-focused portfolio and presence in the UK economy segment further solidify its defensive appeal.
The brokerage maintains a cautious view on InterContinental Hotels Group, which remains underweight due to high valuation and limited near-term catalysts.
The upgrade comes at a time as travel demand shows resilience across key regions, bolstered by consumer preferences and broader macroeconomic trends, indicating a favorable outlook for stock performance in the near to mid-term.
