Honestly I always see Real Madrid as the top favourite of this competition. 15 titles in total and many of them were achieved in last 10 years.

They are always a serious threat to all other clubs here.
Now they've entered a new path with Xabi Alonso. He is experimenting with the players for now. Trying to solve the issue of selfishness in the attacking area. Once he figures it out I believe in them to fight for another CL trophy with all they've got.
They are favorites every season no matter what team they have but Real had such a great decade in football that I don't think it will be mirrored anytime soon by anyone. So like you said , they are favorites but in my opinion they won't win UCL this year and probably they won't it next year either.
Xabi a great coach no doubt and it was such a legend as a player but still very young in coach experience and when you sign with Real , you sign to win every trophy.
