About this content About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business outpu ...

Shore Capital Markets has maintained a generally positive outlook on Premier Inn parent Whitbread PLC (LSE:WTB) despite recent underperformance and projections of a downturn in RevPAR (Revenue Per Available Room). Analysts said Whitbread's financial forecasts suggest a trajectory of growth, with anticipated improvements in revenue, EBITDA, and adjusted profit before tax over the next few years. “We maintain our BUY stance on Whitbread with the forthcoming preliminary results at the end of April set to provi ...

Premier Inn owner Whitbread PLC (LSE:WTB) can be a “recession winner” according to analysts at Jefferies which has a ‘Buy’ rating for the hospitality stock. The broker, in a note, highlighted Whitbread’s strategic focus on expansion and optimisation, with an eye on enhancing returns and deepening its economic ‘moat’, particularly in the UK and Germany. "Whitbread is a recession winner with its budget price point, industry-leading price sophistication, beneficial supply conditions, and £750m of cash firepowe ...

FTSE 100-listed owner of Premier Inn Whitbread PLC (LSE:WTB) copped an upgrade after exhibiting robust performance in its third quarter, as highlighted in a recent broker note from Liberum. Premier Inn significantly outperformed the competition with its fully integrated model, said analysts, as evidenced by the 9% year-over-year increase in revenues per available room. Whitbread’s sales saw a significant uptick, with group-wide sales in the third quarter growing by 11% year- over-year and UK accommodation s ...

Whitbread PLC (LSE:WTB) held full-year guidance as robust demand for hotels supporting occupancy and pricing in the third quarter.  For the 13 weeks to November 30, Whitbread said Premier Inn UK sales rose 11% with strong demand in both London and the regions. Total RevPAR increased 9% and was up 39% versus 2020 with high occupancy and strong pricing, while food and beverage continued to perform well with sales up 6%. In Premier Inn Germany, sales jumped 47% with total estate RevPAR €60. Whitbread said the ...

Premier Inn-owner Whitbread PLC (LSE:WTB) could grace investors with upgrades in its Thursday, 11 January third-quarter update, according to Peel Hunt analysts. “As demand remains high and cost inflation is abating, we believe there is scope for upgrades,” analysts wrote in a note. Given the hotel operator is still making market share gains and has a strong balance sheet to underpin long-term growth plans, Whitbread is well positioned, the bank said. Peel Hunt sees Whitbread shares topping 4,000p in the com ...

Financial Data and Key Metrics Changes - The company reported a 44% increase in profit before tax compared to the previous year, with UK margins at 27.5% [8][11] - Revenues, profits, margins, and returns all grew strongly, indicating a robust financial performance [6][11] Business Line Data and Key Metrics Changes - UK accommodation sales increased by 15% year-over-year, while food and beverage sales rose by 10% [7] - In Germany, the company has opened 57 hotels and reported revenues well ahead of last year, despite a soft market [9][10] Market Data and Key Metrics Changes - The total supply of hotel rooms in the UK is not expected to return to pre-pandemic levels for at least five more years, creating opportunities for market share growth [12][54] - The company has gained market share, with its share of overall rooms in the UK increasing from 9% in 2015 to 12% in 2022 [96] Company Strategy and Development Direction - The company is focused on operational excellence and cost savings while continuing to invest in business growth and shareholder returns [6][11] - There is a disciplined approach to expanding the pipeline, with a focus on high-return sites and opportunities [39][42] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the long-term prospects due to a strong market position, customer proposition, and favorable supply backdrop [13][54] - The company is optimistic about maintaining margins despite potential cost inflation, citing historical cost-saving measures [25][32] Other Important Information - An increased interim dividend and a £300 million share buyback have been recommended, reflecting strong cash flow and financial health [11][13] - The company is transitioning to a new cloud-based reservation system, Opera Cloud, which is expected to enhance commercial benefits [47][49] Q&A Session Summary Question: Demand slowdown strategy - Management noted resilient demand and a balanced customer base, which provides resilience against potential downturns [15][16] Question: Confidence in maintaining margins - Management expressed confidence in retaining margins through internal strategies and operational efficiencies [25][32] Question: Germany's commercial strategy - Management indicated positive progress in Germany, with a focus on trading events better and building brand awareness [21][24] Question: UK pipeline replenishment - Management highlighted that their UK pipeline is still larger than competitors, focusing on high-return opportunities [38][39] Question: Supply study details - Management clarified that 70% of the independent hotel supply that exited the market is unlikely to return, supporting their supply outlook [55][56] Question: Pricing strategy - Management confirmed that they can continue to drive prices while maintaining value for customers, with improved guest satisfaction scores [60][72] Question: Cash and buyback program - Management emphasized a flexible capital allocation framework, balancing investments in growth with shareholder returns [101][106]

Financial Data and Key Metrics Changes - The company reported significant revenue growth and strong cash flow, with increased returns in the U.K. market [6][8] - An initial £300 million share buyback was announced, alongside a £100 million dividend increase, reflecting confidence in the financial outlook [9][22] Business Line Data and Key Metrics Changes - In the U.K., record occupancy levels and strong RevPAR growth were achieved, outperforming the market [8][40] - In Germany, 51 hotels are now operational with 7,000 rooms in the pipeline, and the performance of 18 established hotels is in line with market expectations [7][8] Market Data and Key Metrics Changes - The U.K. hotel market has seen a structural shift with a material reduction in supply, coinciding with a recovery in demand [6][8] - The independent hotel sector in Germany has declined by about 5% compared to pre-pandemic levels, providing opportunities for growth [80][82] Company Strategy and Development Direction - The company aims to replicate its successful U.K. model in Germany, focusing on long-term returns of 10% to 14% [7][79] - There is a commitment to optimizing food and beverage performance as part of the overall guest experience [16][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year outlook, supported by strong current trading and positive forward indicators [8][9] - The company is focused on maintaining profitability in the U.K. despite expected cost inflation, with a target to offset these costs through like-for-like sales growth [39][40] Other Important Information - The company has made a £1 billion commitment to the German market, indicating a strong belief in its long-term potential [7][79] - The recent acquisition in Germany includes six hotels and a freehold property in Vienna, which is seen as a strategic addition to the portfolio [32][34] Q&A Session All Questions and Answers Question: Organic room growth targets for U.K. and Germany - Management acknowledged that room growth next year will be slightly lower than in previous years but expressed confidence in the medium-term pipeline [13][14] Question: Food and beverage performance and ownership model - Management emphasized the importance of food and beverage to customer experience and indicated ongoing opportunities for optimization [16][18] Question: Share buyback and future capital allocation - Management confirmed that the capital allocation framework will guide future decisions on buybacks and investments, without committing to specific amounts [22][23] Question: Recent acquisition details and future opportunities - The acquisition in Germany was described as a strategic move, with potential for more acquisitions as the market evolves [32][33] Question: Demand outlook and maintaining U.K. profit - Management indicated strong demand in both leisure and business segments, with expectations to maintain U.K. profitability despite cost pressures [35][40] Question: Pricing strategy and elasticity of demand - Management noted that the company is well-positioned in the value space, with room for further pricing adjustments while maintaining strong occupancy [88][90]

Financial Data and Key Metrics Changes - The overall performance in the first half was outstanding, with revenues and profits exceeding pre-pandemic levels [3] - The company has returned to paying dividends, with a half-year dividend of 24.4 pence per share to be paid in December [11] Business Line Data and Key Metrics Changes - Premier Inn's hotel performance in the U.K. saw accommodation sales up 35% compared to pre-pandemic levels, outperforming the market by 26 percentage points [4] - The long-term network target for Premier Inn has been increased from 110,000 rooms to 125,000 rooms, with 82,700 rooms currently open [5] Market Data and Key Metrics Changes - In Germany, a cohort of 18 hotels that have been trading for over a year turned profitable, indicating progress in this market [6] - The company is well-positioned to capitalize on a strong market recovery in both the U.K. and Germany [3] Company Strategy and Development Direction - The company continues to execute its "investing to win" strategy, which has positioned it well for market recovery [3] - There is a disciplined approach to managing returns and capital, with a focus on maintaining an investment-grade balance sheet [9][38] Management's Comments on Operating Environment and Future Outlook - Despite macroeconomic uncertainties, the outlook is positive, with significant growth opportunities in the U.K., Ireland, and Germany [11] - The management acknowledges the challenges posed by inflation and the cost of living crisis but remains confident in the company's ability to manage costs effectively [27][28] Other Important Information - The CEO will deliver the next financial update in January 2023, with a planned orderly handover to the new CEO, Dominic Paul [12] - The company has a strong balance sheet that supports ongoing investments and operational stability [7][20] Q&A Session Summary Question: What are the expectations for FY '24 cost growth and utility costs? - Management indicated that they are managing costs well and have hedged a significant portion of utility costs for next year [27][34] Question: What are the plans for food and beverage performance? - The management emphasized that food and beverage is integral to the hotel business and they are investing in improvements [30][31] Question: How is the balance sheet review progressing? - The management confirmed that the balance sheet is regularly reviewed, and they are focused on maintaining investment-grade metrics [38][40] Question: What is the outlook for supply in the market? - Management expects the contraction in supply to continue, with a favorable landscape for growth due to reduced competition [61][62] Question: What is the status of the German market and M&A opportunities? - The management remains optimistic about the German market and is looking for small M&A opportunities [66]

WHITBREAD FY23 INTERIM RESULTS 25 OCTOBER 2022 Premier Inn ** Rest easy CONTENTS H1 FY23 PERFORMANCE AND OUTLOOK Alison Brittain FINANCIAL REVIEW Hemant Patel DRIVING LONG-TERM VALUE Alison Brittain WHITBREAD 2 2 H1 PERFORMANCE & OUTLOOK | Alison Brittain - CEO Premier Inn WHITBREAD H1 FY23 Highlights | 'Investing to win' strategy driving outperformance 44 | --- | --- | --- | |----------------------|------------------------------------------------------------------------------------------------------------- ...