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Whitbread has reported higher third-quarter sales as growth in Premier Inn UK and Germany offset a planned reduction in food and beverage revenues under its Accelerating Growth Plan.
Total group sales rose 2% to £781m in the third quarter, driven by higher accommodation sales in both markets. This was partly offset by lower UK food and beverage sales as Whitbread continues to convert lower-returning branded restaurants into hotel extensions.
In Premier Inn UK, total accommodation sales increased 2%, with revenue per available room (RevPAR) up 3%. Whitbread said it maintained a RevPAR premium of £5.63 compared with the midscale and economy market.
However, food and beverage sales declined in line with expectations as a result of the Accelerating Growth Plan.
Meanwhile, Premier Inn Germany delivered stronger growth, with total accommodation sales up 12% in local currency, or 16% in sterling.
Total estate RevPAR rose 7% to €76 (£65.7), while RevPAR at more established hotels increased 9% to €86 (£74.4), significantly outperforming the wider market.
Current trading has remained positive. In the six weeks to 8 January 2026, UK accommodation sales and RevPAR were both up 4%, while Germany accommodation sales rose 11%, with estate RevPAR up 5% to €56 (£48.4).
Whitbread said it now expects to deliver cost efficiencies of £75m to £80m in FY26, up from previous guidance of £65m to £70m, driven by savings across labour, technology and procurement. There were no other changes to its full-year guidance.
Progress continues on the Accelerating Growth Plan, with around 90% of planning applications submitted, about 65% approved and work completed or under way at roughly 35% of sites.
The group also completed the sale and leaseback of a further nine hotels for £89m and said it remains on track to recycle £250m to £300m of property proceeds into higher-returning growth opportunities. Whitbread expects to complete its £250m share buy-back by 30 April 2026, having so far purchased 7.7m shares for around £217m.
Looking further ahead, Whitbread updated its FY27 outlook following the recent UK Budget. It now expects gross UK cost inflation of between 6.5% and 7.5% on its £1.7bn cost base, including an estimated £35m impact from changes to business rates, lower than its previous estimate of £40m to £50m.
The group will provide an update on its Five-Year Plan alongside its FY26 preliminary results on 30 April 2026.
Dominic Paul, chief executive of Whitbread, said: “We delivered a strong performance in the third quarter, with positive momentum across the business. By focusing on what we can control, we have continued to make great progress against our key initiatives and will deliver a higher level of efficiency in FY26 than previously expected.
“…Looking forward, we now expect the cost impact from the proposed changes in business rates included in the recent UK Budget to be c.£35m in FY27, which is lower than our preliminary estimate of £40m – £50m. We continue to believe the proposed changes to business rates are damaging for the overall sector and will impact future investment and job creation and we, along with the wider hospitality industry, continue to press the UK Government for changes.”
