Whitbread plc (LON:WTB) has announced its preliminary results.
UK accommodation sales up versus FY25; continued market outperformance
Premier Inn Germany achieves key profitability milestone
Extension of the Accelerating Growth Plan to include all remaining branded restaurants
Announcement of New Five-Year Plan
Throughout this release, all percentage growth comparisons are made by comparing the current period performance (FY26) for the 52 weeks to 26 February 2026 with FY25 (52 weeks to 27 February 2025).
FY26 Group Financial Summary
| £m | FY26 | FY25 | vs FY25 | |||
| Statutory revenue | 2,920 | 2,922 | 0% | |||
| Adjusted EBITDAR† | 1,074 | 1,030 | 4% | |||
| Adjusted profit before tax† | 483 | 483 | 0% | |||
| Statutory profit before tax | 298 | 368 | (19)% | |||
| Statutory profit after tax | 213 | 254 | (16)% | |||
| Adjusted basic EPS† | 208.5p | 194.6p | 7% | |||
| Statutory basic EPS | 123.3p | 141.5p | (13)% | |||
| Dividend per share | 97.0p | 97.0p | – | |||
| Group ROCE† | 11.1% | 11.3% | (20)bps | |||
| Net debt† | (709) | (483) | (226) | |||
| Lease-adjusted leverage† | 3.3x | 3.0x | n/a | |||
Overview
| · The Group continued to outperform the midscale and economy (‘M&E’) market in both the UK and Germany on total accommodation sales and RevPAR growth1 |
| · Group statutory revenue was in line with last year, reflecting positive growth in UK and Germany accommodation sales, offset by the expected lower food and beverage (‘F&B’) revenues as a result of the Accelerating Growth Plan (‘AGP’) |
| · Adjusted EBITDAR† was up 4%, despite significant external headwinds and reflects the benefits of our vertically integrated model, the strength of our brand and the impact of our technology-led commercial initiatives, highlighting the quality and resilience of our business |
| · Adjusted profit before tax (‘PBT’)† of £483m (FY25: £483m) reflects a positive trading performance, accelerated cost efficiencies and a marked increase in German profitability, offset by high cost inflation and interest costs; adjusted basic EPS† was 208.5p (FY25: 194.6p) |
| · Statutory profit before tax of £298m (FY25: £368m) was after charging £185m of adjusting items (FY25: £116m) that primarily related to £130m of impairment charges associated with the AGP, other non-cash and net impairment charges of £32m; statutory basic EPS was 123.3p (FY25: 141.5p) |
| · During the year, the Group completed £313m of property-related disposals, including £282m of sale and leasebacks at an average net initial yield of 5.4% |
| · The Group’s previously announced £250m share buy-back completed on 25 February 2026, with a total of 8.8m shares purchased and subsequently cancelled |
| · The Board is recommending a final dividend of 60.6p per share (FY25: 60.6p) making 97.0p for the year (FY25: 97.0p) |
New Five-Year Plan
| · As set out in a separate announcement today, following the unexpected impact of business rates, a material increase in employment costs and the completion of a detailed business review, we have announced a New Five-Year Plan that will result in a material step up in margins and returns by FY31 |
| · The plan includes: a reallocation of capital to fund the proposed extension of the AGP2 to replace all remaining branded restaurants with a more efficient and tailored F&B offering for our guests; a reduced and refocused capital programme in the UK and Germany; an increase in cost savings; and a material reduction in the capital intensity of the business, including recycling more freehold property into growth projects |
| · In FY27, the extension of the AGP to include all remaining 197 branded restaurants will reduce total F&B sales by £140m – £160m as we transition to our new integrated format and exit those sites marketed for sale. There will be a £40m reduction in profits as we transition the remaining branded restaurants, which will more than offset positive progress from our original AGP, resulting in a net £10m reduction to profits |
1: STR data, standard basis, 28 February 2025 to 26 February 2026, UK and Germany M&E markets excluding Premier Inn
2: Proposal is subject to employee consultation
Financial highlights
• Premier Inn UK: total accommodation sales and RevPAR both increased by 1%, reflecting a return to market growth from the second quarter; the strength of our brand and commercial programme meant we outperformed the M&E market1 by +1pp on RevPAR growth and increased our RevPAR premium to £5.88
• UK F&B sales fell 8%, which was slightly better than expected due to the timing of branded restaurant disposals
• UK segment adjusted pre-tax profit margins† were 18.8% (FY25: 18.8%), reflecting a strong trading performance, the expected reversal of FY25 one-off costs relating to the AGP, and accelerated cost efficiencies of £83m2 (FY25: £75m), offset by higher than expected cost inflation
• Premier Inn Germany: total sales grew by 13% and we strengthened our outperformance versus the M&E market3, driven by the growing maturity of our hotels and brand, as well as the positive impact of our commercial initiatives; segment adjusted PBT† was £2m (FY25: £11m loss)
• Group: adjusted EBITDAR† increased to £1,074m (FY25: £1,030m)
• Group: adjusted profit before tax† was £483m (FY25: £483m) and statutory profit before tax was £298m (FY25: £368m) after charging £185m of adjusting items (FY25: £116m) including £130m of accelerated depreciation and impairments in relation to the AGP and other non-cash, net impairment charges of £32m
• Total cash returned to shareholders via dividends and share buy-backs in FY26 was £419m (FY25: £442m). Since April 2023, the Group has returned a total of £1.6bn
• Strong balance sheet: lease adjusted leverage†4 of 3.3x (FY25: 3.0x) and net debt† of £709m (FY25: £483m) reflecting lower cash balances following the completion of the £250m share buy-back
1: STR data, standard basis, 28 February 2025 to 26 February 2026, UK M&E market excluding Premier Inn
2: Total cost efficiencies delivered in FY26, after the removal of non-recurring structural savings
3: STR data, standard basis, 28 February 2025 to 26 February 2026, Germany M&E market excluding Premier Inn
4: Aligned to Fitch definition and methodology
Segment highlights
Premier Inn UK
| £m | FY26 | FY25 | vs FY25 | |||
| Statutory revenue | 2,659 | 2,691 | (1)% | |||
| Segment adjusted profit before tax† | 499 | 507 | (2)% | |||
| Revenue per available room† | £64.81 | £64.42 | 1% | |||
Premier Inn Germany1
| £m | FY26 | FY25 | vs FY25 | |||
| Statutory revenue | 261 | 231 | 13% | |||
| Segment adjusted profit / (loss) before tax† | 2 | (11) | >100% | |||
| Revenue per available room† | £54.19 | £50.90 | 6% | |||
1: Using a GBP:EUR exchange rate of 1.16
Current trading1
• Premier Inn UK
• Total accommodation sales and RevPAR were up 1.9% and 0.9% respectively versus FY26, outperforming the market, with a particularly strong performance in London
• Our forward booked position is ahead of last year, supported by peak leisure demand and a strong events calendar
• F&B: sales were 4.2% lower than FY26, reflecting the exit from a number of lower-returning branded restaurants, mitigated by a positive performance from our integrated restaurants
• Premier Inn Germany
• Total accommodation sales up 9.0% in local currency versus FY26, with the positive impact of continued estate growth. The market has been impacted by a reduced events profile versus last year and increased occupancy levels were more than offset by lower room rates, resulting in total estate RevPAR of €60 and RevPAR for our cohort of 17 more established hotels2 of €68
• We continued to outperform the market on both accommodation sales and RevPAR growth
• Our forward booked position is ahead of last year, and we are confident that we can drive further RevPAR growth
1: Eight weeks to 23 April 2026
2: Cohort of 17 more established German hotels that were open and trading under the Premier Inn brand for 12 consecutive months as at 4 March 2022
FY27 guidance
• UK
• Sales: every 1% change in like-for-like† accommodation sales versus FY26 has a £16.5m – £17.5m impact on profit before tax; and every 1% change in total F&B sales1 versus FY26 has a c.£1m impact on profit before tax
• Inflation: gross inflation is expected to be at the top end of our previously guided range of 6.5% – 7.5% on our £1.7bn UK cost base; including the changes to business rates that will result in an impact of c.£35m; net inflation is expected to be at the top end of our previously guided range of 3% – 4% after cost efficiencies of £60m
• New rooms: c.1,000 new rooms (of which 80% will be freehold) and c.750 AGP extension rooms with the majority of all new rooms opening in the second half of the year
• Extension of the Accelerating Growth Plan, subject to employee consultation, to include all remaining 197 branded restaurants2:
o Total F&B sales: reduction of between £140m and £160m as we transition to our new integrated format and exit those sites marketed for sale
o Adjusted PBT†: there will be a £40m reduction as we transition the remaining branded restaurants, which will more than offset positive progress from our original AGP, resulting in a net £10m reduction
• Germany
• New rooms: c.2,300
o c.1,000 of organic room openings of which 30% will be leasehold
o c.1,300 of new room openings, of which 100% will be leasehold, associated with recent additions to our portfolio
• Adjusted PBT†3: c.£10m increase versus FY26, before one-off costs of c.£10m primarily in relation to new openings in FY27 associated with recent additions to our portfolio
• Central
• Adjusted PBT†: £5m reduction as a result of the impact of the ongoing geopolitical tensions in the Middle East on the hotels operated by our joint venture
• Balance sheet
• Net capex: £200m – £300m
• Gross capex: £700m – £750m (including £200m – £250m relating to the extended AGP)
• Proceeds from property transactions: £450m – £500m, including sale and leasebacks and disposals
1: F&B sales excluding sites impacted by the AGP for which separate guidance is provided
2: 197 sites to be converted, FY26 results: revenue £284m and adjusted loss before tax £(13)m, plus associated central overheads of £10m
3: Using a GBP: EUR exchange rate of 1.15
Outlook
Our forward booked position is ahead of last year and we continue to see positive trading momentum. While we have limited visibility of short-term market demand and inflation, including the potential impact of the ongoing geopolitical tensions in the Middle East, our vertically integrated model means we have significant self-help levers to drive positive like-for-like† sales momentum whilst also reducing our costs. By focusing on what we can control, we are confident that we will extend our market-leading position in the UK, accelerate returns in Germany and deliver long-term value creation for shareholders.
Commenting on today’s results, Dominic Paul, Whitbread Chief Executive, said:
“In the UK, we made excellent progress on each of our strategic initiatives and Premier Inn again outperformed the wider market, supported by the strength of our customer offer and the benefits of our commercial programme.
“FY26 was a breakthrough year for Germany, delivering our first annual profit – a major milestone for the Group. The quality and value of our customer offer is driving high guest scores and our brand awareness continues to increase, underpinning our strong outperformance versus the rest of the market.
“I’d like to thank our colleagues across the Group for their hard work in delivering this performance. Against a challenging consumer and macroeconomic backdrop, we continue to deliver material cost savings and plan to drive more in FY27, while delivering a fantastic service for our guests.
“As set out in a separate announcement today, our New Five-Year Plan is a significant step for the Group. Whilst the proposed extension of the Accelerating Growth Plan will impact profits in FY27, our new plan will make our assets work harder while creating a stronger, higher-returning business that delivers for our guests, teams and shareholders.”
