Positive strategic
progress, stable UK performance and continued momentum in
Germany
Throughout this release percentage
growth comparisons are comparing Q3 FY25 performance for the 13
weeks to 28 November 2024 to the same period in FY24, unless stated
otherwise.
Comment from Dominic Paul, Whitbread Chief
Executive:
"Our Five-Year Plan is set to deliver incremental profit of at
least £300m by FY30 and release more than £2bn for shareholders
through a combination of dividends and share buy-backs. We are
making good progress against our strategic priorities including our
Accelerating Growth Plan and cost efficiency programme, and we
remain confident in our ability to deliver a step change in
profits, margins and returns.
"The structural shift in UK supply has meant that Premier Inn
is continuing to sustain the significant gains made since the
pandemic. Whilst forward visibility remains limited, the favourable
supply backdrop, together with our brand strength and commercial
initiatives, means we are confident that we can continue to
outperform the market.
"In Germany, we continued to perform strongly in what is an
important trading period. As a result, we remain on track to reach
profitability on a run-rate basis this year which is a key
milestone and gives us real confidence as we continue to build
momentum towards becoming the country's number one hotel
brand."
Overview
|
•
|
Total UK accommodation sales were in
line with last year and we delivered another strong trading
performance in Germany. With the expected reduction in UK food and
beverage ('F&B') sales as a result of our Accelerating Growth
Plan, total Group sales were down 2% to £763m
|
|
•
|
Premier Inn UK:
o Trading improved during the quarter resulting in total
accommodation sales broadly in line with last year and up 51%
versus FY20; total RevPAR was down 3% and up 35% versus
FY20
o Premier Inn continued to outperform the midscale and economy
('M&E') sector with total accommodation sales growth 0.8pp
ahead and a RevPAR premium of £6.241
o F&B sales performed in line with our expectations
reflecting the impact of our Accelerating Growth Plan
|
|
•
|
Premier Inn Germany:
o Total accommodation sales were up 23% in local currency (19%
in GBP), led by the increasing maturity of our estate and the
benefit of our commercial initiatives
o Total estate RevPAR increased to €71 and RevPAR of our more
established hotels was €79, performing well ahead of the wider
M&E market2
|
|
•
|
Current trading: In the six weeks to
9 January 2025, total UK accommodation sales were up 2% and total
Germany accommodation sales were up 37%
|
|
•
|
£100m share buy-back was completed
on 13 November 2024
|
Q3
FY25 Summary
|
|
Q3
|
Q3 YTD
|
|
|
UK
|
Germany3
|
Total
|
UK
|
Germany3
|
Total
|
|
Sales growth:
|
|
|
|
|
|
|
|
Accommodation
|
0%
|
19%
|
1%
|
0%
|
21%
|
2%
|
|
Food & beverage
|
(14)%
|
22%
|
(12)%
|
(9)%
|
17%
|
(8)%
|
|
Total
|
(4)%
|
19%
|
(2)%
|
(2)%
|
20%
|
(1)%
|
|
Like-for-like sales
growth:
|
|
|
|
|
|
|
|
Accommodation
|
(3)%
|
19%
|
(1)%
|
(2)%
|
18%
|
(1)%
|
|
Food & beverage
|
(1)%
|
21%
|
0%
|
(2)%
|
14%
|
(2)%
|
|
Total
|
(3)%
|
20%
|
(1)%
|
(2)%
|
17%
|
(1)%
|
1:
STR data, standard basis, 30 August 2024 to 28 November 2024, UK
M&E market excludes Premier Inn
2:
STR data, standard basis, 30 August 2024 to 28 November 2024,
Germany M&E market excludes Premier Inn
3:
Germany sales growth in GBP
Current trading (six weeks to 9 January 2025) and FY25
guidance
|
•
|
UK total accommodation sales were up
2% with RevPAR in line with last year
|
|
•
|
UK F&B sales continue to perform
in line with our expectations and previous guidance
|
|
•
|
Germany total accommodation sales
were up 37% and
RevPAR up 28% in local currency
|
|
•
|
There is no change to our previous
FY25 guidance
|
FY26 guidance and
outlook
|
•
|
We are making good progress against
our strategic priorities and remain on track with our Five-Year
Plan. Whilst forward visibility remains limited, we expect to
realise further benefits from our commercial initiatives that will
enable us to continue to outperform the market
|
|
•
|
There is no change to our
Accelerating Growth Plan guidance and we expect to fully reverse
the FY25 PBT negative impact of £20m to £25m
|
|
•
|
Including the impact of the UK
Budget, we expect gross UK cost inflation to be between 5% and 6%
on our £1.7bn cost base. However, with efficiencies of £50m, net UK
cost inflation is expected to be between 2% and 3%
|
|
•
|
We're making excellent progress in
Germany and with continued estate and brand maturity, we are on
track to deliver profitability in FY26
|
|
•
|
Expected reduction of between £15m
and £20m in net finance income versus FY25 reflecting lower cash
balances and the impact of refinancing the Group's 2015
bond
|
For
more information please contact:
A
live Q&A teleconference for investors and analysts will be held
at 9:15am GMT on 16 January 2025. Details to join are noted below.
An on-demand version of this will be made available on the website
(www.whitbread.com/investors/results-reports-and-presentations)
shortly after.
Q&A teleconference participant dial-in
numbers:
Start time - 9:15am GMT
United Kingdom (Local): 020 3936
2999
Participant Access Code:
005367
Appendix
1) Premier Inn UK
key performance indicators
|
|
Q1
|
Q2
|
Q3
|
Q3
%1
|
YTD
|
|
London
|
|
|
|
|
|
|
Occupancy (full inventory)
|
78.6%
|
84.3%
|
83.1%
|
(3.2)pp
|
82.0%
|
|
Average room rate (£)
|
109.12
|
116.65
|
112.47
|
(2.9)%
|
112.84
|
|
Revenue per available room
(£)
|
85.77
|
98.32
|
93.49
|
(6.4%)
|
92.55
|
|
Total accommodation sales
(£m)
|
120.0
|
138.5
|
133.9
|
0.2%
|
392.4
|
|
|
|
|
|
|
|
|
Regions
|
|
|
|
|
|
|
Occupancy (full inventory)
|
82.6%
|
84.3%
|
83.9%
|
(0.8)pp
|
83.6%
|
|
Average room rate (£)
|
71.00
|
84.77
|
74.43
|
(0.9)%
|
76.78
|
|
Revenue per available room
(£)
|
58.67
|
71.45
|
62.43
|
(1.8)%
|
64.19
|
|
Total accommodation sales
(£m)
|
374.1
|
456.2
|
398.7
|
(0.6)%
|
1,229.0
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
Occupancy (full inventory)
|
81.9%
|
84.3%
|
83.7%
|
(1.2)pp
|
83.3%
|
|
Average room rate (£)
|
77.59
|
90.53
|
81.35
|
(1.2)%
|
83.22
|
|
Revenue per available room
(£)
|
63.54
|
76.31
|
68.12
|
(2.5)%
|
69.33
|
|
Total accommodation sales
(£m)
|
494.1
|
594.7
|
532.7
|
(0.4)%
|
1,621.4
|
|
|
|
|
|
|
|
|
Total accommodation sales vs M&E
market2
|
+0.6pp
|
+0.3pp
|
+0.8pp
|
(4.6)pp
|
+0.6pp
|
|
RevPAR premium vs M&E
market2
|
+£5.44
|
+£6.32
|
+£6.24
|
£(0.25)
|
+£5.99
|
|
|
|
|
|
|
|
|
F&B
|
|
|
|
|
|
|
Total food and beverage sales
(£m)
|
191.0
|
175.1
|
162.4
|
(13.6)%
|
528.5
|
|
|
|
|
|
|
|
|
Total UK sales (£m)
|
685.2
|
769.8
|
695.1
|
(3.8)%
|
2,150.0
|
2) Premier Inn
Germany key performance indicators
|
|
Q1
|
Q2
|
Q3
|
Q3
%1
|
YTD
|
|
Occupancy (full inventory)
|
64.6%
|
72.0%
|
73.5%
|
7.7pp
|
70.1%
|
|
Average room rate (€)
|
87.88
|
90.05
|
96.89
|
7.0%
|
91.81
|
|
Revenue per available room
(€)
|
56.79
|
64.87
|
71.25
|
19.6%
|
64.34
|
|
Total accommodation sales
(€m)
|
54.3
|
62.0
|
69.3
|
23.1%
|
185.7
|
|
Total food and beverage
(€m)
|
8.8
|
9.8
|
11.3
|
26.6%
|
30.0
|
|
Total sales (€m)
|
63.1
|
71.8
|
80.7
|
23.6%
|
215.6
|
Notes:
1:
Growth versus Q3 FY24
2:
STR data, standard basis, 1 March 2024 to 28 November 2024, M&E
market excludes Premier Inn
