Q1 Trading Update

Whitbread PLC
18 June 2024
 

 

Strengthening trading performance in the UK and continued progress in Germany

 

Throughout this release percentage growth comparisons are comparing Q1 FY25 performance for the 13 weeks to 30 May 2024 to the same period in FY24, unless stated otherwise.

 

Summary

·      Group total sales grew 1% to £739m, driven by improved UK trading and continued progress in Germany

·      Premier Inn UK:

o As expected, trading performance strengthened during the quarter and Q1 accommodation sales were in line with last year and up 55% versus FY20; total RevPAR was 2% behind and 38% ahead of FY20

o This meant that our total accommodation sales growth was 0.6pp ahead (Q1 FY24: 0.3pp) versus the midscale and economy ('M&E') sector1 and our RevPAR premium was £5.62 (Q1 FY24: £6.12; Q1 FY20: £2.32)

o Food and beverage ('F&B') sales were 1% behind with strong breakfast sales driven by high occupancy in our hotels offset by softer trading in a number of our branded restaurants

·      Premier Inn Germany:

o Total accommodation sales were up 15%2, led by the increasing maturity of our estate and continued room growth

o Total estate RevPAR increased to €57 and our more established hotels RevPAR was €61, outperforming the wider M&E market3

·      £150m share buy-back: on track with 3.2m shares purchased so far for a total consideration of £96m

·      Confident in full year outlook, underpinned by our strong commercial programme and good progress on cost efficiencies

 

Comment from Dominic Paul, Chief Executive:

 

"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. In Germany, we delivered another strong performance, led by the increasing maturity of our estate and continued room growth. Our cohort of more established hotels is continuing to outperform the M&E market and we remain on course to achieve the important milestone of reaching break-even on a run-rate basis during the second half of 2024.

 

"Whilst 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.

 

"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."

 

Q1 FY25 summary (versus Q1 FY24)

 

 

UK

Germany2

Total

Sales growth:




   Accommodation

0%

+15%

+1%

   Food & beverage

(1)%

+13%

(1)%

   Total

0%

+15%

+1%

Like-for-like sales growth:




   Accommodation

(2)%

+6%

(1)%

   Food & beverage

(1)%

+2%

(1)%

   Total

(1)%

+5%

(1)%

Notes:

1: STR data, standard basis, 1 March 2024 to 30 May 2024, UK M&E market excludes Premier Inn

2: Germany sales growth in GBP

3: STR data, standard basis, 1 March 2024 to 30 May 2024, Germany M&E market excludes Premier Inn

 

Q1 performance

Having been 1% behind last year in the first seven weeks, our trading performance strengthened during the remainder of the quarter and accommodation sales recovered to be in line with last year and up 55% versus FY20. While midweek business demand and peak leisure demand remained robust, weekend demand at short-lead was slightly softer, particularly in London, reflecting a return to more normalised levels after what was a very strong performance last year. However, with the strength of our brand and the benefit of our commercial programme, we continued to outperform the market with total accommodation sales growth 0.6pp ahead (Q1 FY24: 0.3pp ahead) delivering a RevPAR premium of £5.62 (Q1 FY24: £6.12; Q1 FY20: £2.32).

 

UK F&B sales were 1% behind last year, with strong breakfast sales driven by high occupancy in our hotels offset by softer trading in a number of our branded restaurants.

 

In Germany, total accommodation sales were up 15% versus last year led by the increasing maturity of our estate and continued room growth. Our total estate RevPAR increased to €57 (Q1 FY24: €55) and our cohort of more established hotels continued to perform ahead of the wider market, achieving a RevPAR of €61 (Q1 FY24: €61).

 

Outlook

We remain confident in the full year outlook. In the UK, recent trading has been more encouraging as we move into the peak periods of the year and our forward booked position remains positive. We are continuing to execute our commercial programme and net inflation is now expected to be at the lower end of guidance as a result of increased cost efficiencies.

 

In Germany, we have launched our first online-focused brand campaign and are trading well. We are on course to break-even on a run-rate basis during calendar year 2024 which is a key milestone as we progress towards our longer-term target of 10-14% return on capital.

 

Interim results

The Group's interim results will be announced on 16 October 2024.

 

For more information please contact:

Investor Relations -  Whitbread                                                                 investorrelations@whitbread.com

Peter Reynolds, Director of Investor Relations                                                 peter.reynolds@whitbread.com

Sophie Nottage, Investor Relations Manager                                                  sophie.nottage@whitbread.com

Kirsten O'Reilly, Investor Relations Manager                                                     kirsten.oreilly@whitbread.com

 

Media - Teneo                                                                                                           whitbread@teneo.com

Jessica Reid                                                                                                               +44 (0) 20 7353 4200

 

A live Q&A teleconference for investors and analysts will be held at 8:00am BST on 18 June 2024. 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 - 8:00am BST

United Kingdom (Local): 020 3936 2999

Participant Access Code: 630351

 



 

Appendix

 

1)   Premier Inn UK key performance indicators

 

 

 

FY24

 

 

FY25

 

 

Q1

Q2

Q3

Q4

Full Year

Q1

Q12

%

London

 

 




 

 

Occupancy (full inventory)

81.2%

86.7%

86.3%

78.0%

83.0%

78.6%

(2.6)pp

Average room rate (£)

111.71

116.39

115.78

94.10

109.78

109.12

(2.3)%

Revenue per available room (£)

90.76

100.91

99.90

73.43

91.17

85.77

(5.5)%

Total accommodation sales (£m)

120.8

134.6

133.7

99.9

489.0

120.0

(0.6)%

 






 

 

Regions

 

 




 

 

Occupancy (full inventory)

83.1%

85.9%

84.7%

74.5%

82.0%

82.6%

(0.5)pp

Average room rate (£)

71.06

84.38

75.07

61.10

73.30

71.00

(0.1)%

Revenue per available room (£)

59.06

72.49

63.55

45.50

60.12

58.66

(0.7)%

Total accommodation sales (£m)

372.0

456.7

401.3

288.7

1,518.7

374.1

0.6%

 






 

 

Total

 

 




 

 

Occupancy (full inventory)

82.8%

86.0%

84.9%

75.1%

82.2%

81.9%

(0.9)pp

Average room rate (£)

78.02

90.01

82.30

67.15

79.76

77.59

(0.6)%

Revenue per available room (£)

64.59

77.45

69.90

50.43

65.56

63.54

(1.6)%

Total accommodation sales (£m)

492.8

591.3

534.9

388.7

2,007.7

494.1

0.3%

 







 

Total accommodation sales growth vs M&E market1

+0.3pp

+3.9pp

+5.4pp

+1.5pp

+3.1pp

+0.6pp

+0.3pp

RevPAR premium vs M&E market1

+£6.12

+£7.27

+£6.49

+£4.08

+£5.95

+£5.62

£(0.50)

 

 

 





 

F&B

 

 





 

Total food and beverage sales (£m)

193.7

201.4

187.9

179.2

762.0

191.0

(1.4)%








 

Total UK sales (£m)

686.5

792.6

722.8

567.9

2,769.7

685.2

(0.2)%

 

 

2)   Premier Inn Germany key performance indicators

 

 

 

FY24

 

 

FY25

 

 

Q1

Q2

Q3

Q4

Full Year

Q1

Q12

%

Occupancy (full inventory)

64.5%

64.0%

65.8%

53.4%

61.8%

64.6%

0.2pp

Average room rate (€)

84.81

80.12

90.53

75.45

83.07

87.88

3.6%

Revenue per available room (€)

54.67

51.29

59.59

40.28

51.36

56.79

3.9%

Total accommodation sales (€m)

46.2

47.3

56.3

38.2

188.0

54.3

17.6%

Total food and beverage sales (€m)

7.7

8.3

9.0

6.9

31.8

8.8

15.3%

Total sales (€m)

53.8

55.6

65.3

45.1

219.8

63.1

17.3%

 

Notes:

1: STR data, standard basis, 1 March 2024 to 30 May 2024, M&E market excludes Premier Inn

2: Sales growth versus FY24

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 

Companies

Whitbread (WTB)
UK 100

Latest directors dealings