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Whitbread has reported that its total group sales were down 2% to £763m in the third quarter due to the expected reduction in UK food and beverage (‘F&B’) sales as a result of its Accelerating Growth Plan.
Trading improved for Premier Inn UK during the quarter resulting in total accommodation sales broadly in line with last year, while total revenue per available room (RevPAR) was down 3%.
However, in the six weeks to 9 January 2025, total UK accommodation sales were up 2% to £763m with RevPAR in line with last year.
Germany also saw a 37% rise in total accommodation sales and 28% increase in RevPAR.
In addition, the group announced that there is no change to its previous FY25 guidance and that its UK F&B sales also continue to perform in line with its expectations and previous guidance.
Looking ahead, the group, which also owns the Beefeater pub chain, stated that it is making good progress against its strategic priorities and remains on track with our Five-Year Plan.
It is also making no change to its Accelerating Growth Plan guidance and it expects to fully reverse the FY25 PBT negative impact of £20m to £25m.
Additionally, taking into account the impact of the UK Budget, it expects gross UK cost inflation to be between 5% and 6% on our £1.7bn cost base.
However, with efficiencies of £50m, net UK cost inflation is expected to be between 2% and 3%.
Dominic Paul, Whitbread chief executive, said: “Our Five-Year Plan is set to deliver incremental profit of at least £300m by FY30 and release more than £2bn for shareholders through a combination of dividends and share buy-backs. We are making good progress against our strategic priorities including our Accelerating Growth Plan and cost efficiency programme, and we remain confident in our ability to deliver a step change in profits, margins and returns.
“The structural shift in UK supply has meant that Premier Inn is continuing to sustain the significant gains made since the pandemic. Whilst forward visibility remains limited, the favourable supply backdrop, together with our brand strength and commercial initiatives, means we are confident that we can continue to outperform the market.”
