Highlights

  • WTB updated FY26 guidance, projects Germany segment adjusted profit before tax up to GBP 5m
  • Premier Inn Germany revenue increased 9% YoY with segment adjusted loss before tax reducing to GBP 3m.
  • Whitbread’s H1 FY26 adjusted profit before tax decreased by 7% YoY to GBP 316m.

Whitbread plc (LSE:WTB) has released its financial results for the first half of FY26, covering the 26 weeks ending 28 August 2025. Statutory revenue for the period reached GBP 1,541 million, down 2% from GBP 1,570 million in the prior year period (H1 FY25). Adjusted EBITDAR declined 2% to GBP 601 million, while adjusted profit before tax decreased 7% to GBP 316 million (H1 FY25: GBP 340 million). Statutory profit before tax dropped to GBP 287 million (H1 FY25: GBP 309 million), with statutory profit after tax at GBP 217 million (H1 FY25: GBP 220 million).

Earnings and Dividend

Adjusted basic earnings per share (EPS) was 133.7p, down from 137.1p, whereas statutory basic EPS increased by 2% to 123.7p. The company maintained its interim dividend at 36.4p per share. Group return on capital employed (ROCE) fell to 10.3% from 11.9% in H1 FY25. Net debt rose to GBP 563 million from GBP 370 million in the prior year period, and lease-adjusted leverage increased to 3.2x compared to 2.8x in H1 FY25.

Segment Performance

Premier Inn UK
Total accommodation sales remained broadly flat, with revenue per available room (RevPAR) decreasing 1% to GBP 69.48. Adjusted pre-tax profit for the UK segment fell 7% to GBP 331 million. Food and beverage sales declined by 11% due to the Accelerating Growth Plan, partially offset by integrated restaurant performance.

Premier Inn Germany
The German segment saw a 9% revenue increase to GBP 125 million, with the adjusted loss before tax narrowing to GBP 3 million from GBP 9 million previously. Revenue per available room rose 2% to GBP 52.90. Despite a drop in market demand, growth was driven by estate expansion, hotel maturity, and commercial initiatives.

Current Trading and Outlook

For the six weeks ending 9 October 2025, UK total accommodation sales and RevPAR increased by 3% compared to the previous year, with food and beverage sales trailing by 4%. In Germany, total accommodation sales grew 9%, with estate-wide RevPAR increasing 3% to EUR 82 and RevPAR at 17 established hotels rising 8% to EUR 95. Updated FY26 guidance anticipates adjusted pre-tax profit of up to GBP 5 million for the Germany segment (previously GBP 5-10 million). UK cost inflation is expected to range between 2% and 3%, partially offset by cost efficiencies of GBP 65-70 million. Lease expenses from sale and leasebacks are expected to add GBP 5-10 million in the second half.

Strategic Updates

Whitbread maintains its Five-Year Plan, aiming for incremental adjusted pre-tax profit of at least GBP 300 million by FY30, supported by:

  • Accelerating Growth Plan unlocking 3,500 extension rooms
  • UK network expansion to 98,000 rooms by FY30
  • Cost efficiencies targeting GBP 250 million in savings by FY30
  • Germany expansion aiming for 20,000 rooms and GBP 70 million adjusted pre-tax profit by FY30
  • Disciplined capital allocation with GBP 1 billion expected to be recycled for growth

Management Comment – Dominic Paul, Chief Executive:

"In the UK, with a return to market growth, we sustained our outperformance versus the market through the strength of our guest proposition and commercial programme. We are making strong progress on our Accelerating Growth Plan which, together with our committed pipeline of both Premier Inn and 'hub by Premier Inn' rooms, means we remain on track to reach at least 98,000 open rooms by FY30, extending our position as the clear market leader.

We're making great progress against our strategic priorities and our Five-Year Plan is firmly on track to deliver a step change in profits, margins, and returns. We remain confident in returning GBP 2bn to shareholders through share buy-backs and dividends and we are on track to complete the previously announced GBP 250m share buy-back by the time of our FY26 results."

Share performance of WTB

The company is currently trading at GBX 3,000 per share, down by 7.32% from its last close of GBX 3,224.