Whitbread (WTB) Q1 2027 TU earnings summary

Executive summary

• Strong Q1 performance with total group sales up 2% to £727m, driven by growth in both UK and Germany, with UK accommodation sales up 3% and Germany up 16% year-over-year.

• UK accommodation sales and RevPAR outpaced the midscale and economy market, with London showing particularly robust growth.

• Germany saw 16% growth in total accommodation sales, driven by six new leasehold hotels and commercial initiatives, despite a softer market due to fewer high-impact events.

• Forward booking positions in both the UK and Germany are ahead of last year, supported by robust leisure demand.

• The new five-year plan aims to accelerate strategy, enhance business quality, deliver significant shareholder value, and includes exit from branded restaurants in the UK.

Financial highlights

• UK accommodation sales increased 3% and RevPAR rose 2% compared to the same quarter last year.

• Germany's total accommodation sales grew 16% year-over-year in GBP (13% in local currency), with estate RevPAR at €63 and established hotels at €73.

• UK food & beverage sales down 5% due to transition to integrated offering; Germany food & beverage sales up 32% year-over-year.

• Revenue from extension rooms and new food and beverage spaces is performing well, with strong guest feedback.

• Group total sales: UK £653.3m (+0.8%), Germany £73.9m (+17.9%).

Outlook and guidance

• Confident in the full-year outlook with forward bookings ahead of last year in both core markets.

• No change to cost inflation guidance: gross cost inflation expected at 6.5%-7.5%, net inflation at 3%-4% after efficiencies.

• Well hedged on utilities for the year; will update guidance at half-year if needed.

• Business rates impact expected to remain in line with previous guidance.

• Confident in outperforming the wider midscale and economy market for the full year.