11 January 2024
If you are covering the latest trading update from Whitbread, please see the following comment from Mamta Valechha, equity research analyst at Quilter Cheviot:
“Whitbread reported an encouraging Q3 trading update this morning, confirming a solid Q3 and momentum which has carried on into Q4.
“Premier Inn UK sales were up +11% year on year (9% revenue per available room), with Whitbread citing strong demand in both London and the Regions. Encouragingly, this strong trading has continued into Q4 with UK accommodation sales up 12% (RevPAR 10%).
“Food & beverage sales were up 6% in Q3, accelerating to 7% in Q4 following strong performance over the festive period.
“Elsewhere, in Germany sales continue to improve. This was led by the continued expansion of the Premier Inn Germany estate, as well as the group seeing an uplift in rates as hotels mature and occupancy improves. Whitbread confirmed that it remains on track to break-even during 2024.
“Overall, there has been no changes to guidance in either the UK or Germany for the current financial year. The group provided initial cost guidance for FY2025 which is moderating and is expected to be between 3-4%, with cost efficiencies already in place. Whitbread also noted that its forward booking position in the UK remains positive on the back of a favourable supply environment.
“Whitbread is delivering solid results and has made good progress in Germany. It remains well positioned to further benefit from the strong level of demand but weak supply of budget hotels, alongside the significant reduction in the number of independent hotels, particularly in the UK.”
