view share price

Why invest?

Whitbread is the UK’s largest hospitality business, employing over 38,000 people and a long-time constituent of the FTSE100. We are the number one hotel operator in the UK with a leading value F&B offering and are rapidly expanding our Premier Inn brand in Germany. The following are key elements of our investment case:

Strong track record of attractive returns for shareholders

Our strong balance sheet and vertically integrated business model differentiate us from many other hotel groups. However, in conjunction with the careful execution of our business strategy, they have delivered strong growth both in the UK and now Germany, whilst also continuing to deliver a consistent and superior customer experience. The result has been an impressive track record of consistent returns for our shareholders, outside the pandemic, and additional benefits for our other key stakeholders.

Disciplined capital allocation delivers long-term sustainable returns
Why Invet Fy24

Market leader in the UK

With over 840 hotels and 800 restaurants you are never far from one of our establishments. We consistently outperform the rest of the Midscale and Economy hotel sector in the UK:

Premier Inn UK performance vs the M&E market
Market Outperformance Fy24

1: STR data, standard basis, Premier Inn accommodation sales, occupancy, ARR and absolute RevPAR 3 March 2023 to 29 February 2024, UK M&E market excludes Premier Inn

Operationally, we control all key areas of the customer journey, helping us to achieve excellent guest scores a reputation for quality and value

Quality Score Fy24

Source: YouGov BrandIndex Quality & Value scores as at 29 February 2024 based on a nationally representative 52-week moving average

We have significant growth potential in the UK and Ireland

UK&I Growth | Network target increased from 110,000 to 125,000 rooms
Growth Potential Fy24
Updated Network Plan Target
  • UK target equivalent to 17% market share
  • Postcode level analysis in 1,744 catchments, mapping existing supply and opportunity
  • Opportunity across all regions particularly in London and South East
Pathway to 125,000 rooms
  • Extensions of high occupancy freehold hotels
  • Organic pipeline growth and single site acquisitions
  • Roll-out of hub concept in London
  • Estate optimisation

We have a growing presence in Germany

£1.1bn Of Capital Invested In Germany To Date
With A Growing National Presence
Growth De 23 3
  • 10,500 open rooms
  • 6,000 rooms in the committed pipeline
  • Estate growth through organic pipeline and M&A

In Germany, since opening our first hotel in 2016, our network has grown rapidly and as at 29 February 2024 we have 10,500 open hotel rooms and 6,000 rooms in the committed pipeline. Focusing on prime locations across the country, we are working hard to grow our brand presence and build our customer base.

We have a strong balance sheet with significant asset backing

Balance Sheet Fy24

We have a substantial freehold property portfolio that represents a real source of competitive advantage. We are rated BBB (Fitch Ratings 17 August 2023) and as at 29 February 2024 had net debt of £298m.

Our strategic priorities

The execution of our three strategic pillars is delivering strong financial results. This performance, together with our vertically-integrated business model, strong fundamentals and appropriate capital structure mean we now have a platform for continued long-term growth, both in our core UK market as well as in Germany. 

Our Force for Good program underpins the decisions we make, ensuring we operate responsibly and sustainably in everything we do. We are rated AA by MSCI and medium-risk by Sustainalytics and have also progressed our validation process and our carbon targets have been validated by the Science Based Targets Initiative.

Read about our business model in the about us section
  1. Grow and innovate in the core UK markets
    • Ownership and operating model is a competitive advantage
    • Vertically integrated operating model is a competitive advantage
    • Number one brand in the UK and a winning customer proposition
    • Growth through existing pipeline, single site acquisition and optimisation
    • Replicate our UK success in Germany
    • Ambition to be the market leader
    • Significant headroom to grow – organic and M&A
  3. Build the capability to support long-term growth
    • Freehold value and ongoing efficiency programme
    • Ongoing investment in our teams and technology
    • Balance sheet flexibility and ability to invest
Ffg Team

Our force for good program underpins the decisions we make ensuring we operate responsibly and sustainably in everything we do

Read more

Our strengths & opportunities 

A structurally advantageous market combined with our strong and agile business model makes us well-placed to capitalise on the recovery opportunity and reinforce our market leading position. 

  • UK
  • Germany

Enhanced structural opportunities

Market supply contraction accelerating PI market share gains and growth opportunity

Accelerated Decline In Independent Supply
‘000 rooms
Accelerated Decline In Independent Supply
  • Both UK and German markets are highly fragmented with a high percentage of independent hotel players
  • Both  markets are characterised by long-term migration from independents to budget branded hotels, driven by demand weakness and structural cost pressures and operational advantages
  • The pandemic increased the rate of independent exits in the UK hotel sector, we expect this to continue over the next 18 – 24 months

Budget model is structurally advantaged​

Budget hotel sector is higher growth and outperforms in downturns

Total Supply Contracted In Aftermath Of Pandemic
Total Hotel Supply ‘0001
Total Supply Contracted In Aftermath Of Pandemic
  • The UK budget branded sector has grown faster than the rest of the hotel market
  • The German hotel market is highly fragmented with the largest operator only having c2% market share. Our aim is to become the clear no 1. budget operator in Germany.

Broad customer reach​

Flexible model caters to a wide range of customer types

Broad Customer Reach 23 3
  • Premier Inn’s customer base is driven by domestic travellers seeking short stays (typically 1 – 2 nights) for both business and leisure
  • This broad reach not only covers a wide range of customers and markets, but also makes us more resilient as we’re not reliant on one particular area of the market
  • The German market is  larger than the UK and also has higher levels of domestic travel for both business and leisure, making this a highly attractive market in which to replicate our successful UK business model

Strong hotel brand​

Strong hotel brand in the UK

Value Score
  1. Source: YouGov BrandIndex Satisfaction, Impression, Value, Recommended & Quality Scores as at 29 February 2024 based on a nationally representative 52-week moving average
  • We have standout customer brand scores in the UK hotel market and expect customers to rely more on their most trusted brands as they seek to travel again
  • As our presence grows in Germany, we are working hard to replicate the success we have in the UK and grow the Premier Inn brand

Best-in-class operations​

Competitive advantage driving a winning customer proposition

Premier Inn Logo
  • Brand strength
  • Scale advantage
  • Direct digital distribution
  • Operational control
  • Property flexibility
  • Everyday efficiency

Direct digital distribution​

Cost efficient and provides ownership of the customer relationship

Premier Inn Site
  • We have market leading direct digital distribution in the UK with less than 1% of sales going through OTAs
  • Direct distribution has significantly lower customer acquisition and retention costs as we are not subject to high charges from online travel agents
  • This approach enables us to own the relationship with the customer and invest in more effective direct and digital marketing

Lean and agile cost model​

Right-sized cost base enables superior value for money offering​

Cost model Fy24
  • We have a strong track record of material cost savings helped by our unique operating model where we retain control over all of our operations
  • Our efficiency programme ensures we retain a lean and agile cost base, enabling us to deliver both quality and value for money for our guests and return on capital for our shareholders

Financial flexibility​

Strong balance sheet provides offensive and defensive flexibility​

We have a strong balance sheet with low leverage and access to significant levels of liquidity, allowing us to continue to invest when others may be constrained

Cash & cash equivalents£697m
Undrawn RCF£775m
Total liquidity£1.5bn
Freehold: Leasehold split
Open estateTotal estate
(open and commited)
UK only56% : 44%56% : 44%
Germany only24% : 76%27% : 73%
Whitbread52% : 48%52% : 48%

(as at FY24)

The strength of our balance sheet is underpinned by our freehold estate and provides us with flexibility to optimise our estate

Visit our brand sites