Whitbread (WTB) H1 2026 (Q&A) earnings summary

Executive summary

• UK market returned to growth in Q2, with accommodation sales flat year-over-year and continued outperformance in the mid-scale and economy segments on both accommodation sales and RevPAR; Germany delivered positive momentum and is on track for profitability, supported by a major room acquisition.

• Strategic initiatives, including the Accelerating Growth Plan (AGP), progressed with transformation of over 100 lower-returning restaurants, unlocking 3,500 higher-returning extension rooms, and supporting the Five-Year Plan targeting £2bn in shareholder returns by FY30.

• Statutory revenue declined 2% to £1,541m, with adjusted profit before tax down 7% to £316m; group outperformed the market in both the UK and Germany on accommodation sales and RevPAR.

• Significant shareholder returns delivered, with £182m returned through dividends and buy-backs in H1 and a five-year target of £2bn by FY30.

• Five-Year Plan execution remains on track, targeting at least £300m incremental adjusted PBT and major network expansion, including 1,500 new rooms in Germany.

Financial highlights

• Group statutory revenue for H1 FY26 was £1,541m, down 2% year-over-year; adjusted EBITDAR was £601m, down 2%.

• Adjusted profit before tax was £316m, down 7% year-over-year; statutory profit before tax was £287m, also down 7%.

• Adjusted basic EPS was 133.7p, down 2% year-over-year; statutory basic EPS increased 2% to 123.7p.

• Lease-adjusted net debt to adjusted EBITDAR at 3.2x; net debt increased to £563m.

• Group ROCE at 10.3%, down 160bps year-over-year; UK ROCE at 11.8%, down 220bps.

Outlook and guidance

• Positive trading momentum and forward bookings ahead of last year in both the UK and Germany; UK accommodation sales and RevPAR up 3% in early H2.

• UK net cost inflation expected at 2–3%, with food and beverage inflation higher than anticipated, partially offset by £65–£70m in cost efficiencies.

• Germany expected to reach profitability in FY26, with revised segment adjusted PBT guidance of up to £5m and strong forward bookings.

• Five-Year Plan targets at least £300m incremental adjusted PBT and £2bn in shareholder returns by FY30.