Whitbread profits fall to £316m amid flat UK sales

Whitbread has reported adjusted pre-tax profit of £316m for the first half of its 2026 financial year, down from £340m a year earlier, as Premier Inn maintained its lead in the UK hotel market and the company moved closer to profitability in Germany.

Statutory pre-tax profit for the 26 weeks to 28 August 2025 was £287m, compared with £309m last year, after accounting for £28m in one-off charges related mainly to restaurant closures and depreciation. Adjusted earnings per share slipped 2% to 133.7p, while the statutory figure rose 2% to 123.7p.

According to the group, total UK accommodation sales were broadly flat compared with the prior year, with RevPAR down 1%. It added that the performance improved in the second quarter as market growth returned, and Premier Inn continued to outperform competitors, increasing its RevPAR premium to £6.10.

Food and beverage sales fell 11%, in line with expectations, reflecting the ongoing replacement of lower-returning branded restaurants with integrated outlets under its Accelerating Growth Plan. UK profit margins narrowed to 23.4% from 24.6% as higher cost inflation was only partly offset by £43m of savings in the period.

The company reaffirmed that its Five-Year Plan remains on track to deliver at least £300m in additional adjusted profit before tax by 2030 through a combination of network expansion, efficiency savings and property recycling. Its freehold and long-leasehold portfolio has been valued between £5.5bn and £6.4bn, which the group said supports its plan to reinvest £1bn into growth projects.

Whitbread also reiterated plans to return £2bn to shareholders by 2030 through dividends and share buy-backs. It declared an interim dividend of 36.4p per share, unchanged from last year, and said £108m of a £250m buy-back programme had been completed so far.

Forward bookings in both the UK and Germany were reported to be ahead of last year. The group expects to keep UK cost inflation within its guided range of 2% to 3% and plans to open between 500 and 700 new rooms this year as part of its expansion strategy.

Dominic Paul, chief executive of Whitbread, said: “In the UK, with a return to market growth, we sustained our outperformance versus the market through the strength of our guest proposition and commercial programme. We are making strong progress on our Accelerating Growth Plan and remain on track to reach at least 98,000 open rooms by FY30, extending our position as the clear market leader.

“In Germany, we maintained our outperformance versus the market, having traded well in what was a softer than expected demand environment. We’re making great progress against our strategic priorities and remain confident in delivering a step change in profits, margins and returns.”