Equity Analysis /
United Kingdom

GB : Travel & Leisure - Overall - Chain reaction

    Anna Barnfather
    Anna Barnfather

    Analyst - Leisure

    Andrew Wilkinson
    Andrew Wilkinson

    Analyst - Leisure

    CGS-CIMB
    16 April 2021
    Published by

    Leisure stocks have rallied in anticipation of a swift recovery post reopening driven by a rebound in demand and aided by a collapse in supply. Our analysis supports this thesis, showing significant market share shifts and consolidation potential. Our deep dive into the supply dynamics of each sub-sector suggests that superior scale and access to capital give multi-site chains a once-in-a-generation opportunity to take market share and expand. In this respect, we identify CPC, GYM, LGRS, RTN and TEG as best placed to benefit from the supply shake-out. Elsewhere in the sector, we downgrade OTB to hold.