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Highlights

  • WTB reports 2% decline in UK accommodation sales but outpaces midscale and economy market
  • WTB’s Germany operations saw a 16% increase in accommodation sales and 12% RevPAR growth.
  • The company maintains GBP 250m buyback plan; expects GBP 300m profit uplift by FY30.

Whitbread PLC (LSE:WTB), is a UK-based hospitality group and owner of Premier Inn, the country’s largest hotel brand operating over 800 hotels in the UK and is expanding in Germany.

The company has provided a business update highlighting progress on its five-year growth and efficiency strategy, which includes expansion in the UK and Germany, commercial execution, cost-saving initiatives, and a targeted return to profitability in its German operations.

In the UK, total accommodation sales at Premier Inn were down 2% YoY primarily driven by brand outperformed the broader midscale and economy (M&E) market, with sales and revenue per available room (RevPAR) ahead by 1.7 percentage points (pp) and 1.6pp respectively. This translated to an increased RevPAR premium of GBP 5.63. Regional performance remained relatively stable, with London properties outperforming by 3.9pp in accommodation sales and 2.4pp in RevPAR, while non-London regions were up modestly by 0.5pp and 0.7pp.

Food and beverage (F&B) revenue in the UK declined due to the company’s ongoing Accelerating Growth Plan, which includes optimizing the F&B offering at selected sites to facilitate hotel expansion. The initiative is expected to unlock an additional 3,500 room extensions, with a focus on improving guest service and generating higher long-term financial returns.

In Germany, Whitbread reported a notable uptick in performance, with accommodation sales rising by 16% in local currency (15% in GBP terms). RevPAR across the entire German estate rose 12% to EUR 63, while the more mature hotels in the portfolio saw a 17% increase, reaching EUR 72. The growth was supported by the brand’s increasing maturity and the impact of commercial strategies designed to enhance market presence and occupancy.

Whitbread confirmed that its share repurchases programme of GBP 250 million remains underway, with 1.2 million shares repurchased to date for GBP 34 million.

The company reaffirmed its outlook and strategic targets, noting it remains on course to achieve incremental profits of at least GBP 300 million by fiscal year 2030. The plan includes delivering over GBP 2 billion in shareholder returns via share buybacks and dividends. Whitbread also expects to realise GBP 60 million in cost efficiencies this year and has set a target of GBP 250 million to GBP 300 million in property disposal proceeds.

In a statement, management highlighted the continued execution of its strategy in the UK and German markets. Despite limited forward visibility due to short booking windows, the company’s current forward-booked position in the UK is ahead of the previous year, underpinning confidence in future performance. In Germany, Premier Inn’s operations continue to gain traction, supported by a growing property base and targeted commercial efforts. The company remains confident in achieving profitability in the region by FY26, which it considers a critical milestone toward its long-term aim of generating double-digit returns on capital.