Core Insights - Whitbread's German business showed strong performance in Q3, with total accommodation sales up 12% and RevPAR increasing by 7% in local currency, indicating a path to profitability this year [1] - UK food and beverage sales met expectations as part of Whitbread's growth plan, focusing on enhancing guest experience and improving returns by transforming lower-returning restaurants into hotel extensions [2] - In the early part of Q4, UK performance improved, with total accommodation sales and RevPAR both up 4% compared to Q3, attributed to product consistency and brand strength [3] UK Performance - UK occupancy remained high at 83% with RevPAR up 3% in Q3, maintaining a healthy premium over the mid-scale and economy market [6] - London was a key driver for growth, with RevPAR increasing by 7% year over year, and management expressed confidence in London's consistent performance [5] - Despite RevPAR growth, occupancy was slightly down year over year, but management emphasized a focus on optimizing room usage [4] Efficiency and Cost Management - Whitbread's efficiency program is ahead of expectations, with projected FY26 savings increased by GBP 10 million to a range of GBP 75 million to GBP 80 million, focusing on real efficiencies rather than mere cost-cutting [9][10] - The company adjusted its estimate of the cost impact from UK business rates for FY27 to approximately GBP 35 million, down from GBP 40 million to GBP 50 million [11] - Management is exploring various options to enhance profits and margins, with a five-year plan to be detailed in April [15] Capital Recycling and Strategic Initiatives - Whitbread is on track to achieve GBP 253 million in disposal proceeds for the year, including a recent transaction with LondonMetric valued at GBP 89 million [13] - Proceeds from disposals are intended to support investments in higher-return projects, with the growth program expected to generate high teens returns on capital [14] - Management is reviewing strategic options and will consider shareholder views in its ongoing evaluation [15] Future Outlook - The company anticipates that additional efficiency savings will positively impact the bottom line, with continued trading strength potentially providing upside against previous forecasts [16] - Forward visibility for the UK remains limited, but bookings for FY27 are ahead of last year, with positive long-lead leisure bookings [17]