Analyst Bullish on IHG Shares, Turns Cautious on Whitbread

Berenberg has taken a more selective stance on UK leisure stocks in its 2026 outlook, turning cautious on Whitbread (LON: WTB) while becoming more optimistic on InterContinental Hotels Group (LON: IHG). 

The broker downgraded Whitbread to Hold from Buy with a 2,900 pence price target, citing a weaker near-term backdrop. InterContinental, meanwhile, was upgraded to Buy from Hold, with analyst Jack Cummings assigning a $157 price target.

Berenberg expects revenue per available room to recover in the United States, a key market for both operators, but sees stronger relative upside for IHG. 

The call adds to recent momentum behind InterContinental, which has climbed more than 11 percent over the past three months despite being down 3.3 percent year to date and 2.8 percent over the last 12 months.

The upgrade also follows a similar move in December, when Jefferies raised IHG to Buy, arguing that hotels remain an “attractive” sector as structural travel demand continues to strengthen. Jefferies said the post-pandemic travel boom is not a “flash in the pan,” pointing to consumer shifts toward experiences and expanding global middle-class demand.

By contrast, recent analyst commentary on Whitbread has turned more cautious. Its shares are up 7.6 percent year to date but remain 5.2 percent lower over the last year. 

Jefferies downgraded the Premier Inn owner in December, warning that the UK’s unfavourable backdrop has created a difficult mix of low RevPAR growth and high cost inflation. The firm flagged downside risks tied to weakening earnings momentum and capital allocation.