European hospitality equities struggled through 2025, lagging the broader market amid episodes of geopolitical turbulence that weighed on leisure demand and investor sentiment. In a fresh outlook for 2026, Bernstein’s analysts have highlighted a small group of companies they view as best positioned to benefit from an eventual sector recovery.
The research frames these recommendations as selective entry points into high-quality names rather than a blanket endorsement of the whole sector. Bernstein’s ranking methodology combines current performance with forward-looking measures, giving particular attention to valuation multiples and growth potential as investors consider positioning for 2026.
Compass Group tops Bernstein’s list for the European leisure sector in the firm’s 2026 view. The analysts identify the company’s recent resilience and strategic positioning as reasons it stands out after a year in which many EU leisure stocks were hit by geopolitics. Compass Group reported 8.6% organic revenue growth for Q3 2025 and subsequently raised its full-year guidance. Following that update, Goldman Sachs upgraded the stock to Buy from Neutral, a development Bernstein cites as supportive of its conviction in Compass as an entry point into a long-term growth story.
Accor received an upward target adjustment in Bernstein’s analysis, with the price target raised to 56.6 from 52.4. Bernstein attributes the change to a forward model roll and higher peer valuations feeding into its framework. The updated target incorporates an EV/EBITDA multiple of 13.9x for the next twelve months plus one year, reflecting the firm’s stronger near-term growth expectations for the French hospitality operator.
Cirsa completes Bernstein’s top three. The firm nudged its target for Cirsa to 20.8 from 20.2, a modest increase that acknowledges the companys recent debt refinancing and the improvement that refinancing brings to its balance sheet. Bernstein also flags that this positive development is partially counterbalanced by decreasing peer valuations; under the firms metrics Cirsa is now trading at 7.1x EV/EBITDA for the next twelve months plus one year.
Taken together, these three names represent Bernsteins highest conviction plays in the European hotel space as it looks toward 2026. Their analysis suggests that, despite the sectors underperformance in 2025, there are selective opportunities for investors who want exposure to leisure recovery through companies with relative operational strength, clearer earnings visibility or balance-sheet improvements.
Investor takeaway
- Bernstein highlights Compass Group, Accor and Cirsa as preferred exposure to European leisure heading into 2026.
- Valuation multiples and recent corporate developments - organic revenue growth, guidance upgrades and refinancing - inform the firms rankings.
- These recommendations are presented as selective entry points amid broader sector weakness rather than across-the-board endorsements.