Whitbread posts 'encouraging' Q1 results as union protests over job cuts

Premier Inn owner Whitbread has revealed “encouraging” results for the 13 weeks to 30 May 2024.

 

The hospitality giant, which also owns a number of restaurant chains including Brewers Fayre and Beefeater, reported total group sales grew 1% to £739m compared to the same quarter last year.

 

Whitbread pointed to strengthened UK trading and its progress in the German market for the growth.

 

Premier Inn UK accommodation remained flat compared to Q1 last year, with group sales buoyed by the German market, which reported 15% growth in accommodation and 13% growth in food and beverage.

 

Whitbread said UK midweek business travel and peak leisure travel remained robust in terms of bookings, but short-lead weekend demand was softer, particularly in London. Meanwhile, total revenue per available room (revpar) was 2% down.

 

While F&B sales at Premier Inn UK sites dipped 1%, the group cited strong breakfast sales driven by high occupancy.

 

Chief executive Dominic Paul said he remained confident in the full-year outlook.

 

"Our UK trading results strengthened during the quarter and we continued to grow accommodation sales ahead of the market. Underpinned by the favourable supply backdrop, total accommodation sales and revpar remained significantly ahead of pre-pandemic levels,” he said.

 

"While the normal booking pattern means our forward visibility remains limited, our forward-booked position is positive and we remain confident in the full-year outlook. This reflects a more encouraging trading performance in the UK, our strong commercial programme and increased cost efficiencies, as well as good progress in Germany.”

 

The results come as the Unite union staged a demonstration against the company’s plans to cut 1,500 jobs. Members gathered at Whitbread’s headquarters in Dunstable today to protest as the company met for its annual general meeting.

 

The 1,500 job cuts were announced at the end of April and equate to roughly 4% of Whitbread’s total UK workforce. The losses would come as the group plans to exit 126 branded restaurants over the next two years, having already agreed to sell 21 of these restaurants for £28m.

 

The group also plans to convert 112 branded restaurants into new hotel rooms over the next 24 months.

 

During the 2024 fiscal year ended 29 February, the 126 restaurants generated revenue of £147m and loss before tax of £9m.

 

Paul added: "Our accelerating growth plan to optimise F&B at a number of sites and add 3,500 rooms to our UK pipeline is on track and will increase our momentum to deliver long-term profitable growth. With significant potential in both the UK and Germany, supported by the structural reduction in supply and our asset-backed balance sheet, our strategic plans are set to deliver a step change in our performance."

 

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