Deutsche Bank keeps selective approach on leisure for 2026, highlights hotels

Looking into 2026, Deutsche Bank says it remains selective on European leisure sector, noting hotels are the only sub-sector in positive territory this year, which was marred by geopolitical and tariff uncertainties

"Even though the 2026 outlook does not look too strong, we still expect some of our covered companies to capture a decent level of growth with some operating leverage" - DB

It says almost all companies under its coverage have "solid" balance sheets and prefers "quality" names and those with exposure to the strong leisure clientele, noting favourites "buy"-rated Compass CPG.L and Tui TUI1n.DE

DB upgrades French hotelier Accor ACCP.PA to "buy" from "hold," citing upcoming catalysts like the Essendi disposal to fund shareholder returns; Accor shares are up 2.4% at 0941 GMT

The broker cuts contract caterer Elior ELIOR.PA to "hold" from "buy" pointing to remaining uncertainties the stock's low liquidity; shares in Elior drop around 3%, underperforming the SBF120 index .SBF120, which rises 0.7%