The Premier Inn owner has the most challenged outlook says the German bank in a note on the European hotel sector.
“Whitbread is an asset-heavy model (100% free- and lease-hold) and is the most-exposed group to the UK, which offers strong operating uncertainty for the next few months, especially regarding potential Brexit,” it wrote.
Changes to property accounting guidelines (IRRS 16) are adding to the uncertainty said the bank.
Accor and NH Hotel are its top picks in the sector, though the bank acknowledges there are few catalysts for the shares in either to outperform in the current COVID-19 dominated environment.
Shares in Whitbread rose 7p to 3,104p.