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]

Core Viewpoint - Corvex, a US activist investor, is urging Whitbread, the owner of Premier Inn, to reassess its five-year capital plan due to a £50 million impact from the recent UK Budget changes [1][2][3]. Group 1: Investor Pressure - Corvex has acquired a 6.05% stake in Whitbread and is calling for a strategic review of the company's capital allocation and overall direction in light of the recent UK Budget changes [1][2]. - The UK Budget introduced an overhaul of business rates, leading to increased tax bills for larger commercial properties, which Whitbread expects to result in up to £50 million in additional costs [2][3]. Group 2: Capital Investment Concerns - Corvex has highlighted that Whitbread's current five-year capital plan involves approximately £3.5 billion in investments, which is close to the company's current market capitalization of about £4.06 billion [3][5]. - The investor suggests that the planned investment figure should be reconsidered, indicating a belief that it may be excessive [4]. Group 3: Market Reaction and Company Response - Following Corvex's intervention, shares in Whitbread rose by 6%, although the company's stock has fallen nearly 11% over the past year, with multiple analysts downgrading its rating from "buy" to "hold" [5][6]. - Whitbread's management has stated that they have a clear strategy and are exploring various options to enhance profits and returns in response to the UK Budget's impact [7].

Core Viewpoint - Whitbread has received planning permission to convert Dorset House, a former office building, into a 421-bedroom Premier Inn hotel in London, marking a significant expansion in the company's portfolio in central London [1][2]. Group 1: Project Details - Dorset House, located on Stamford Street in Southwark SE1, spans 90,000 sq ft and will feature a new hotel entrance and basement-level food and beverage space [1][2]. - Construction is anticipated to commence in the second half of 2026, with an expected opening date in summer 2028 [2]. Group 2: Strategic Acquisitions - In 2025, Whitbread has acquired four Premier Inn development sites in central London, adding nearly 1,000 bedrooms and over 262,000 sq ft of development space [3][9]. - The total investment for these four acquisitions exceeds £100 million, showcasing the company's commitment to expanding its presence in high-demand areas [3][9]. Group 3: Company Strategy - Whitbread's senior acquisition manager emphasized the company's strategy to leverage opportunities for expansion in London, aiming to meet strong year-round demand from customers [4][9]. - The successful planning permission for Dorset House is seen as a culmination of an active period for Whitbread's Central London team, with a focus on progressing pipeline hotels into construction swiftly [10].

Core Insights - Whitbread has commenced construction to convert Phoenix House in Vauxhall, London into a 180-bedroom Premier Inn hotel, following an agreement on a lease just eight months prior [1][3] - The site was acquired as part of Whitbread's London expansion program for Premier Inn, with a 30-year lease agreement signed with Lambeth Council [2][4] Group 1 - The conversion involves leasing a 10-storey, 7,469 sqm former office building from Lambeth Council, with planning permission secured 20 weeks after the lease agreement [2] - Construction work has begun with the aim to open the hotel in early 2028, and strip-out works are expected to be completed by Easter 2026 [3][5] - Whitbread is actively seeking similar opportunities for expansion across London, emphasizing the benefits of converting vacant office buildings into hotels [5] Group 2 - Jonathan Langdon, senior acquisition manager for Whitbread, highlighted the successful partnership with Lambeth Council that facilitated the rapid acquisition and planning process [4] - The location is strategically positioned opposite Vauxhall underground station, which is expected to attract customers [5] - The project aligns with Whitbread's goal of sustainable development by repurposing a former office building [5][7]

Core Insights - EXL has renewed its collaboration with Whitbread, focusing on a data-driven approach to transform Whitbread's finance and accounting operations [1][2] - The partnership aims to enhance operational efficiency and drive business value through a comprehensive financial service suite [2][3] - EXL's services will help Whitbread improve financial agility, standardize processes, and reduce operating expenses [3][4] Company Overview - EXL is a global data and AI company that provides services to reinvent business models and drive growth across various industries, including hospitality [6] - The company was founded in 1999 and is headquartered in New York, employing approximately 61,000 people worldwide [6] Partnership Details - The renewed collaboration is a three-year agreement aimed at delivering data-driven financial services and optimizing financial operations [2][3] - EXL will assist Whitbread in updating legacy process flows through the implementation of analytical tools and automation [4] - The partnership emphasizes a long-term, collaborative relationship to ensure continuous and efficient operation of core processes [3][4]