Whitbread Plc (LON:WTB) has announced its preliminary results for 2025.
FY25 Group Financial Summary
| £m | FY25 | FY24 | vs FY24 | |||
| Statutory revenue | 2,922 | 2,960 | (1)% | |||
| Adjusted EBITDAR† | 1,030 | 1,057 | (3)% | |||
| Adjusted profit before tax† | 483 | 561 | (14)% | |||
| Statutory profit before tax | 368 | 452 | (19)% | |||
| Statutory profit after tax | 254 | 312 | (19)% | |||
| Adjusted basic EPS† | 194.6p | 206.9p | (6)% | |||
| Statutory basic EPS | 141.5p | 161.0p | (12)% | |||
| Dividend per share | 97.0p | 97.0p | 0% | |||
| Group ROCE† | 11.3% | 13.1% | (180)bps | |||
| Net debt† | (483) | (298) | (185) | |||
| Lease-adjusted leverage† | 3.0x | 2.6x | n/a | |||
Overview
· Group statutory revenue was down 1% reflecting lower food and beverage (‘F&B’) revenues as a result of our Accelerating Growth Plan (‘AGP’) and softer UK market demand, mitigated by strong growth in Germany
· Adjusted profit before tax† of £483m (FY24: £561m) reflects the impact of AGP, cost inflation and lower interest income, partially offset by increased cost savings and excellent progress in Germany
· Statutory profit before tax of £368m (FY24: £452m) was after charging £116m of adjusting items (FY24: £109m) that primarily related to impairment charges and the Group’s strategic programme costs; statutory basic EPS was 141.5p (FY24: 161.0p)
· We are executing at pace and our Five-Year Plan is on track to deliver incremental adjusted profit before tax† of at least £300m1 by FY30:
o Accelerating Growth Plan (+£100m1): progressing well as we replace lower-returning branded restaurants with an integrated F&B offering at a number of our sites and start to unlock 3,500 extension rooms; full reversal of FY25 adjusted PBT† impact during FY26;
o UK Network expansion (+£120m1): 1,075 new rooms opened in FY25; 1,000 – 1,200 rooms (including AGP extension rooms) expected to open in FY26 and accelerating thereafter to reach 98,000 open rooms in the UK and Ireland by FY30;
o Strong commercial programme: new initiatives are delivering positive UK like-for-like† sales momentum and contributing to our outperformance versus the market2;
o Efficiencies: having delivered £75m of savings in FY25, we are increasing our FY26 guided cost savings from £50m to £60m and are on course to deliver £250m of savings by FY30;
o Germany (+£80m1): with a strong outperformance versus the market3 in FY25, we are on track to deliver adjusted profit before tax† of £5m – £10m4 in FY26 and reach 20,000 open rooms and at least £70m4 adjusted PBT† by FY30; and
o Disciplined capital allocation: to the plan will see us recycle at least £1bn of our more mature property in order to fund high-returning growth including network expansion and AGP and maintain average annual net capex of £500m; expected £250m – £300m of property disposals in FY26
· With strong operating cashflow, we are on track to deliver more than £2bn for share buy-backs and dividends. Given our confidence in the delivery of our Five-Year Plan, together with the strength of our balance sheet, the Board is accelerating these returns by recommending a final dividend of 60.6p per share (FY24: 62.9p) making 97.0p for the year (FY24: 97.0p) and plans to launch a £250m share buy-back to be completed over the next twelve months
1: Incremental adjusted profit before tax† versus FY25
2: STR data, standard basis, 1 March 2024 to 27 February 2025, UK M&E market excludes Premier Inn
3: STR data, standard basis, 1 March 2024 to 27 February 2025, Germany M&E market excludes Premier Inn
4: Using a GBP: EUR exchange rate of 1.18
Financial highlights
- Premier Inn UK: total accommodation sales were in line with last year and with the strength of our brand and commercial initiatives, we outperformed the M&E market1 by +0.7pp; while revenue per available room† (‘RevPAR’) was down 2%, we maintained a healthy RevPAR premium of £5.49 and outperformed the M&E market1 in the second half by +0.3pp on RevPAR growth
- UK F&B sales were in line with our expectations and fell by 11% due to the impact of AGP, partially mitigated by strong breakfast sales
- UK adjusted pre-tax profit margins† were 18.8% (FY24: 21.2%), reflecting the impact of AGP, softer market demand and cost inflation, partially offset by increased cost efficiencies
- Premier Inn Germany: our estate outperformed the M&E market2 and total sales grew 21%, driven by the increasing maturity of our hotels and brand, enhanced distribution, a strong events calendar and the positive impact of our commercial initiatives; adjusted loss before tax† reduced to £11m (FY24: £36m);
- Group: adjusted profit before tax† was £483m (FY24: £561m) and statutory profit before tax was £368m (FY24: £452m) after charging £116m of adjusting items (FY24: £109m) including a non-cash, net impairment charge of £76m, and £45m relating to the Group’s strategic IT & F&B programme costs including our AGP
- Group: adjusted EBITDAR† was £1,030m (FY24: £1,057m)
- Total cash returned to shareholders via dividends and share buy-backs in FY25 of £442m (FY24: £756m)
- Strong balance sheet: lease adjusted leverage† increased to 3.0x (FY24: 2.6x) and net debt† was £483m (FY24: £298m)
Segment highlights
Premier Inn UK
| £m | FY25 | FY24 | vs FY24 | |||
| Statutory revenue | 2,691 | 2,770 | (3)% | |||
| Adjusted profit before tax† | 507 | 588 | (14)% | |||
| Revenue per available room (£)† | 64.42 | 65.56 | (2)% | |||
Premier Inn Germany
| £m | FY25 | FY24 | vs FY24 | |||
| Statutory revenue | 231 | 190 | 21% | |||
| Adjusted loss before tax† | (11) | (36) | 69% | |||
| Revenue per available room (£)† | 50.90 | 44.44 | 15% | |||
Current trading (seven weeks to 17 April 2025)
• Premier Inn UK:
o Total accommodation sales were down 1% versus FY25, however our brand strength and the positive impact of several commercial initiatives meant that we outperformed the M&E market3 by 2pp on both accommodation sales and RevPAR growth, with an increased RevPAR premium of £6.79
o Our forward booked position is ahead of last year, supported by strong peak leisure demand. Although the UK macroeconomic outlook remains uncertain, with the introduction of further commercial initiatives, we remain confident in continuing to outperform the market
• UK F&B: sales were 16% behind FY25, reflecting the removal of a number of lower-returning branded restaurants, in line with our expectations
• Premier Inn Germany: total accommodation sales up 23% versus FY25; total estate RevPAR was €63 and RevPAR for our cohort of 17 more established hotels4 was €73, which were both ahead of the M&E market5
1: STR data, standard basis, 1 March 2024 to 27 February 2025, UK M&E market excludes Premier Inn
2: STR data, standard basis, 1 March 2024 to 27 February 2025, Germany M&E market excludes Premier Inn
3: STR data, standard basis, 28 February 2025 to 17 April 2025, UK M&E market excludes Premier Inn
4: 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
5: STR data, standard basis, 28 February 2025 to 17 April 2025, Germany M&E market excludes Premier Inn
FY26 guidance
• UK: open 1,000 – 1,200 new rooms, the majority of which will open in the second half of the year; 500 – 700 of these new rooms are AGP extension rooms;
• UK: with increased cost efficiencies of £60m (versus previous guidance of £50m), net inflation is expected to be towards the lower end of our previously guided range of 2% – 3% on our £1.7bn UK cost base;
• UK: AGP adjusted PBT† one-off impact of £20m – £25m in FY25 will be fully reversed
• Germany: open c.400 new rooms and deliver adjusted profit before tax† between £5m and £10m1;
• Group: £15m to £20m reduction in net finance income (excluding lease liability interest) versus FY25 reflecting lower cash balances, the outlook for Bank of England rates and the recent issue of a new £400m 5.50% bond; and
• Group: net capital expenditure of £400m – £500m, with gross capital expenditure of between £700m – £750m including AGP (£150m – £200m) and network expansion; receipts from property-related transactions of £250m – £300m
1: Using a GBP: EUR exchange rate of 1.18
Five-Year Plan and medium-term outlook
Our operational and strategic progress in FY25 mean we are positive about the medium-term outlook and the delivery of our Five-Year Plan. Whilst we have limited visibility of short-term market demand and inflation, our vertically integrated model means we have significant self-help levers that can provide positive like-for-like† sales momentum whilst also reducing our costs. By focusing on what we can control, together with strong growth potential in both the UK and in Germany, we remain confident in generating at least £300m incremental adjusted profit before tax† by FY30, releasing more than £2bn available for share buy-backs and dividends.
Commenting on today’s results, Dominic Paul, Whitbread Chief Executive, said:
“Having laid the foundations for significant growth, we are executing at pace and making excellent progress on our strategic initiatives, against what has been a softer market backdrop over the past year. By focusing on what we can control, our Five-Year Plan is on track to deliver a step-change in our profits, margins and returns and we remain positive about the medium-term outlook.
“In the UK and Ireland, our Accelerating Growth Plan is progressing well and as we open our growing committed pipeline, we will reach at least 98,000 open rooms by FY30. At the same time, our commercial strategy is driving our outperformance versus the M&E market and we are continuing to realise material cost savings across all areas of our business without compromising our reputation for both quality and value.
“This will be a breakthrough year in Germany and we are set to deliver our first ever adjusted profit in FY26. We are growing quickly, driving strong guest satisfaction scores, performing well ahead of the market and our cohort of more established hotels is on track to reach its targeted double-digit level of returns. We remain confident in realising our long-term ambition of becoming the country’s number one hotel brand, delivering significant revenue growth, attractive long-term returns and providing a platform for potential expansion into other international markets.
“We remain focused on disciplined capital allocation and returns. Our vertically integrated model is a key source of competitive advantage as we continue to drive further growth. With a more favourable outlook in the property investment market, we will look to recycle at least £1bn of our more mature property assets to fund future growth and drive higher financial returns. Given our confidence in our Five-Year Plan, together with the strength of our balance sheet, we are recommending a final dividend of 60.6p per share and are accelerating the planned delivery of shareholder returns with a £250m share buy-back to be completed over the next twelve months.”
