Whitbread (WTB) Q1 2025 TU earnings summary

Executive summary

• Group total sales grew 1% to £739m in Q1 FY25, driven by improved UK trading and continued progress in Germany.

• UK accommodation sales remained flat year-over-year but are up 55% compared to pre-pandemic levels; Germany accommodation sales rose 15%.

• Germany's more established hotels outperformed the market, with RevPAR at €61 and total estate RevPAR at €57.

• Strategic initiatives include expanding the UK estate by over 3,500 rooms, becoming the top hotel brand in Germany, and executing a major cost efficiency program.

• £150m share buy-back program is on track, with £96m spent on 3.2m shares so far.

Financial highlights

• UK total sales: £685.2m, down 0.2% year-over-year; Germany total sales: €63.1m, up 17.3%.

• UK total accommodation sales: £494.1m, up 0.3%; Germany total accommodation sales: €54.3m, up 15.3%.

• Maintained a healthy RevPAR premium of £5.62 in the UK midscale and economy sector.

• UK occupancy: 81.9% (down 0.9pp); Germany occupancy: 61.8% (up 3.6pp).

• UK RevPAR is 55% ahead of FY20, with Q1 down -1.6% year-over-year but forward bookings ahead of last year.

Outlook and guidance

• Full-year outlook remains confident, with positive forward booked position and improved consumer sentiment.

• Guidance for UK RevPAR at around 1% for the year is seen as achievable, supported by business and peak leisure demand.

• Efficiency program expected to deliver at the higher end of cost savings, with net inflation at the lower end of 3%-4% guidance.

• Germany on track to reach break-even on a run-rate basis in H2 2024, targeting 10-14% return on capital long-term.

• UK trading has improved as the company enters peak periods.