Previews: The Flywheels Continue, Raising IHG/Accor Ests

Research evidence excerpt

Previews: The Flywheels Continue, Raising IHG/Accor Ests

Foundation

July 8, 2026 04:02 AM GMT

Morgan Stanley & Co. International plc+MHotels | Europe Jamie Rollo

Equity Analyst

Previews: The Flywheels Jamie.Rollo@morganstanley.comMorgan Stanley & Co. LLC +44 20 7425-3281

Stephen W Grambling

Equity AnalystContinue, Raising IHG/Accor Stephen.Grambling@morganstanley.com +1 212 761-1010

Morgan Stanley & Co. International plc+Ests James S Harden

Research Associate

Q2 hotel data was generally better than expected, particularly in James.Harden@morganstanley.com +44 20 7677-0986

Ed Young

the US and ME, and we raise FY ests for global players IHG/ Equity Analyst

Accor. Domestic operators Whitbread/Scandic are seeing dull if Ed.Young@morganstanley.com +44 20 7677-1761

steady RevPAR trends, and we maintain ests here, preferring Leisure and Hotels

Europe

OW-rated Whitbread to UW-rated Scandic. Industry View Attractive

What’s Changed

Summary: Q2 hotel trading was ahead of expectations, led by a broadening US

InterContinental Hotels Group

recovery and a faster-than-feared recovery in the Middle East from April’s trough. (IHG.L) From To

Europe remained resilient, and LatAm accelerated, partly offset by softer trends in Price Target US$150.00 US$162.00

China, SE Asia and Australia. We raise FY estimates for global players IHG and Accor,

reflecting better-than-expected RevPAR resilience and continued net unit growth,

which support their asset-light earnings flywheel. Domestic/asset-heavy operators

Whitbread and Scandic remain more subdued, with dull but steady RevPAR trends

and broadly unchanged estimates. Looking ahead, we expect US RevPAR to

moderate after the World Cup but to remain above the flat performance of recent

years.