DB turns more cautious on European hotels, cuts Melia and NH Hotel to 'hold'

Scandic Hotels AB

07/09/2022 11:56

** Deutsche Bank's economists turn "even more cautious" on
the macro scenario for European hotel sector, after the Federal
Reserve's Jackson Hole Conference held in August highlighted
central bankers' focus on lowering inflation over anything else
 urn:newsml:reuters.com:*:nL1N30219A  urn:newsml:reuters.com:*:nL4N30305I
     ** The brokerage flags that further interest rate increases
are expected over the next few months, with expectations for
+75bps in the United States and in Europe, with lower GDP growth
estimates
    ** It adds that tensions in Ukraine, Taiwan as well as
elections in Italy, Britain and Brazil are putting additional
pressure on the general environment
    ** It downgrades Spain's Melia Hotels  MEL.MC  and NH Hotel
 NHH.MC  to "hold" from "buy" and cuts PT to 6.2 euros and 3.1
euros respectively
    ** DB also cuts PT for France's Accor  ACCP.PA  by 26% to
28.1 euros, Sweden's Scandic  SHOTE.ST  by 15% to 39.1 SEK,
London-based Whitbread  WTB.L  by 17% to 3,170p and IHG  IHG.L 
by 3.2% to 5,520p 
    ** Shares of Melia are down 9%, at lowest level since
November 2020


 (Reported by Marta Serafinko)
 ((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00;))