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Highlights

  • Panmure Liberum sets a bullish target of GBp 3,700, indicating a 34.16% upside.

  • Jefferies maintains a BUY rating with a target of GBp 3,100, implying a 12.4% potential gain.

  • Analysts optimistic on Whitbread’s Germany growth and UK resilience despite Q1 headwinds.

Whitbread PLC (LSE:WTB), owner of the UK’s largest hotel brand Premier Inn, has received renewed confidence from analysts as both Panmure Liberum and Jefferies assign BUY ratings, highlighting significant upside potential in the stock. This vote of confidence comes despite a broader slowdown in the UK economy and a mixed Q1 FY26 trading update.

Panmure Liberum Sees Over 34% Upside

Panmure Liberum analyst Anna Barnfather reaffirmed a BUY rating on Whitbread with a price target of GBp 3,700, representing a 34.16% upside from the current trading level of GBp 2,758. The investment house cited Whitbread’s steady execution of its Accelerating Growth Plan, continued outperformance of the midscale and economy hotel market, and its improving RevPAR premium in the UK as key drivers behind the bullish outlook.

Jefferies Also Confirms BUY with Focus on German Growth

Meanwhile, Jefferies analyst Jaina Mistry also reiterated a BUY rating, placing a target of GBp 3,100, implying a more modest yet solid 12.4% upside. While Jefferies flagged historical data insufficiencies on Whitbread’s past performance, the optimism stems largely from the company’s rapidly expanding German footprint, where accommodation sales grew 15% in Q1 and RevPAR in established hotels rose 17% year-on-year.

Recent Financial Metrics

In Q1 FY26 results, the company revealed a 2% decline in UK accommodation sales. Nevertheless, Premier Inn continued to outperform the broader midscale and economy segment by 1.7 percentage points in total accommodation sales and 1.6 percentage points in RevPAR. The company’s £5.63 RevPAR premium reflects brand pricing power.

While UK food and beverage sales dropped 16%, this was attributed to strategic optimisation under the growth plan, including the repurposing of underperforming sites to unlock over 3,500 extension rooms.

In contrast, Germany emerged as a growth engine, with Whitbread’s 62 hotels contributing to a 15% sales increase in local currency. The firm is well on track to deliver its first full-year profit in the region in FY26.

Outlook: Long-Term Value and Strategic Execution

Whitbread remains confident in its Five-Year Plan, which aims to generate at least £300 million in incremental profit by FY30 and deliver over £2 billion to shareholders via dividends and share buy-backs. A total of £34 million has already been spent repurchasing shares.