Whitbread Exceeds Expectations with Strong Q3 Performance, Shares Rally

Whitbread (LON: WTB) announced a robust third-quarter performance, fueled by positive trading momentum in the UK and Germany.

The hospitality giant is making substantial progress on key strategic initiatives, leading to increased FY26 cost efficiency projections.

The news saw the stock climb in early Tuesday trading, currently up around 4.1% at 2,689p per share.

Total Group sales rose by 2% to £781 million, with accommodation sales showing positive gains in both Premier Inn UK and Premier Inn Germany. This growth was partially offset by a planned reduction in UK food and beverage sales, a consequence of the company's Accelerating Growth Plan (AGP).

Premier Inn UK saw a 2% increase in total accommodation sales, driving a 3% rise in RevPAR (Revenue Per Available Room). The brand maintained a healthy RevPAR premium of £5.63 compared to the midscale and economy (M&E) market. Food and beverage sales performed as expected, reflecting the impact of the ongoing AGP.

In Germany, Premier Inn experienced significant growth, with total accommodation sales up 16% in GBP (12% in local currency). This was driven by the increasing maturity of the hotel estate and successful commercial initiatives. Total estate RevPAR climbed 7% to €76, while RevPAR for more established hotels jumped 9% to €86, significantly outperforming the wider German M&E market.

Current trading figures for the six weeks leading to January 8, 2026, show continued positive momentum. UK total accommodation sales and RevPAR both increased by 4%. Accommodation sales in Germany rose by 11%, with total estate RevPAR up 5% to €56.

Whitbread has increased its FY26 cost efficiency target to £75m – £80m, up from the previous estimate of £65m – £70m. These efficiencies are being driven across labour, technology, and procurement. The Accelerating Growth Plan is progressing well, with approximately 90% of planning applications submitted, 65% approved, and about 35% of sites either completed or under construction.

The company has completed the sale and leaseback of nine hotels for £89 million, achieving attractive yields. Whitbread remains on track to recycle £250m – £300m of property proceeds into high-returning growth opportunities, including the AGP. Furthermore, the previously announced £250 million share buy-back program is expected to be completed by April 30, 2026, with 7.7 million shares already purchased for approximately £217 million.

Whitbread anticipates a cost impact of approximately £35 million in FY27 from the proposed changes in business rates included in the recent UK Budget. This is lower than the initial estimate of £40m – £50m. The company, along with the wider hospitality industry, continues to advocate for changes to the proposed business rates.

CEO Dominic Paul commented, “We delivered a strong performance in the third quarter, with positive momentum across the business…we have continued to make great progress against our key initiatives and will deliver a higher level of efficiencies in FY26 than previously expected.”

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