Whitbread Plc on Tuesday reported a 2% increase in third-quarter group sales, supported by higher accommodation revenue in both the UK and Germany.
Stay informed beyond the headlines with premium market insight, AI stock picks, and deep research tools from InvestingPro - 55% off today Total group sales rose to £781 million in the quarter, compared with the same period a year earlier.
The UK-based hospitality company said performance improved across its Premier Inn UK and Premier Inn Germany operations, while food and beverage sales in the UK declined.
In the UK, total accommodation sales increased 2%, with revenue per available room rising 3%. The company said it maintained a RevPAR premium versus the midscale and economy market.
UK food and beverage sales fell 4%, which Whitbread attributed to changes under its Accelerating Growth Plan, including the conversion of some lower-return restaurant brands into higher-return formats.
In Germany, total accommodation sales rose 12% in local currency, or 16% in sterling terms. Estate-wide RevPAR increased 7% to €76, while RevPAR at more mature sites rose to €86. The company said this performance exceeded that of the wider midscale and economy market.
For the six weeks to Jan. 8, 2026, Whitbread said UK accommodation sales and RevPAR were both up 4%. In Germany, accommodation sales increased 11% during the same period, with RevPAR rising 5% to €56.
Chief executive Dominic Paul said the company delivered a strong third-quarter performance. “We delivered a strong performance in the third quarter, with positive momentum,” he said in a statement.
Whitbread raised its expected cost efficiencies for fiscal 2026, saying it now anticipates savings of £75 million-£80 million across labor, technology and procurement, compared with its previous guidance of £65 million-£70 million.
The company also updated its fiscal 2027 outlook following the UK Budget. Whitbread said it expects the impact of proposed business rate changes to be about £35 million, lower than its earlier estimate of £40 million-£50 million. Gross UK cost inflation is expected to be between 6.5% and 7.5%, while net UK cost inflation is forecast at 3%-4% after accelerated efficiencies.
Whitbread said it completed sale-and-leaseback transactions totaling £89 million during the quarter and expects to complete its previously announced share buyback program by April 2026, having purchased 7.7 million shares so far.
