Whitbread sells 51 branded restaurants for £56m

Whitbread has accepted offers on 51 branded restaurants and bars for £56m.

 

It comes after the owner of Premier Inn revealed earlier this year it would convert 112 branded restaurants into 3,500 hotel rooms, as well as exit 126 branded restaurants altogether.

 

Simon Ewins, managing director at Whitbread, told the Annual Hospitality Conference last month some of its restaurants had become a “distraction” to the business.

 

In its half-year results, the hospitality company confirmed it has received planning applications for over a third of its conversion-friendly restaurants. The first sites have already been approved and construction is under way, with the rooms due to be fully operational towards the end of 2026.

 

Whitbread has also sold 51 of its restaurants operating under brands such as Bar + Block, Brewers Fayre and Beefeater, and is in the process of replacing these with an integrated ground-floor F&B proposition.

 

Total F&B sales were down 7% during the period as a result of the changes made to its branded restaurant segment.

 

“The majority of our hotels, including those serviced by one of our existing 387 integrated restaurants or our remaining portfolio of 196 higher returning branded restaurants, are continuing to operate as normal,” the group added.

 

In terms of its rooms, Whitbread reported an adjusted profit before tax of £340m, slightly shy of £391m recorded in H1 FY24.

 

In London, occupancy remained high at 81.5% and was higher still in the regions (83.5%).

 

During the period, Premier Inn opened 780 rooms, including its first joint Premier Inn and ‘Hub by Premier Inn’ development in London’s Paddington.

 

It also closed 304 rooms in line with aims to “optimise [its] estate”, meaning that as of 29 August 2024, Whitbread had 855 hotels and almost 86,000 rooms.

 

By FY30, the group aims to have grown its estate to 98,000 rooms, with a longer-term aim of reaching 125,000 rooms across UK and Ireland.

 

Dominic Paul, chief executive of Whitbread, said: “In the UK, we have a clear pathway to further extend our market-leading position and capitalise on the favourable UK supply backdrop. We are determined to build on our significant outperformance since the pandemic and whilst the market has been slightly softer than last year, we remain on course to grow our UK returns substantially over the medium-term whilst continuing to deliver for our customers, as evidenced by our high guest scores.

 

“Our passion for operational excellence, together with our brand strength, scale and value proposition, are sustaining our strong performance and revenue per available room premium versus the rest of the UK meetings and events sector.”

 

Premier Inn has a 12% share of total hotel room supply as the UK’s largest hotel chain.