Whitbread’s third quarter sales rose 2% to £781mn. UK accommodation sales grew by 2.3% driven by strong pricing which more than offset a small dip in occupancy. Restructuring of the group’s branded restaurants contributed to a fall in food and beverage sales. Sales at Premier Inn Germany were up 17%.
Cost saving guidance for this year has improved by about £10mn to £75-£80mn. The cost hit from changes to the business rates regime next year is now expected to be £10mn lower than first thought.
The £250mn buyback program is close to completion.
The shares were up 4.4% in early trading.
Our view
HL view to follow.
Whitbread key facts
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