European hotel brands show signs of resilience in the first quarter of 2026, driven by strong search dynamics in key Western markets. However, UBS reports that tensions in the Middle East could pose a risk to April volumes.
In a note published this morning, UBS announces that the research index for hotel brands, a key indicator correlated to Revenue Per Available Room (RevPAR), has increased in March 2026 in the United States, the United Kingdom, France, and Germany compared to 2025. UBS bases its calculations on the frequency and evolution of Google searches in the studied markets to understand consumer sentiment towards certain hotel brands. UBS analysts confirm their positive outlook on companies with strong visibility or a robust portfolio dynamic.
– Whitbread (Buy): The group remains the broker’s favorite in the UK, thanks to its Premier Inn brand, which tops the research rankings. Although searches have slightly declined sequentially, they remain at high levels, and the group shows a 3% growth in RevPAR in the last published quarter. – Accor (Buy): The French giant benefits from a strong dynamic for its Ibis brand family, with search interest in March surpassing 2025 levels in France and Germany. However, UBS notes relative weakness for the Mercure and Novotel brands, which show year-over-year and month-over-month search declines. – InterContinental Hotels Group (Neutral): The analyst takes a more cautious stance on IHG. While the luxury InterContinental brand maintains strong scores in the United States, the interest in the Crowne Plaza and Holiday Inn brands remains generally below previous years’ levels, particularly in the UK.
Despite these positive signals in March, the broker warns that the conflict in the Middle East is expected to impact April search statistics.
