Strengthening trading
performance in the UK and continued progress in
Germany
Throughout this release percentage growth comparisons are
comparing Q1 FY25 performance for the 13 weeks to 30 May 2024 to
the same period in FY24, unless stated otherwise.
Summary
· Group
total sales grew 1% to £739m, driven by improved UK trading and
continued progress in Germany
· Premier Inn UK:
o As
expected, trading performance strengthened during the quarter and
Q1 accommodation sales were in line with last year and up 55%
versus FY20; total RevPAR was 2% behind and 38% ahead of
FY20
o This meant
that our total accommodation sales growth was 0.6pp ahead (Q1 FY24:
0.3pp) versus the midscale and economy ('M&E')
sector1 and our RevPAR premium was £5.62 (Q1 FY24:
£6.12; Q1 FY20: £2.32)
o Food and
beverage ('F&B') sales were 1% behind with strong breakfast
sales driven by high occupancy in our hotels offset by softer
trading in a number of our branded restaurants
· Premier Inn Germany:
o Total
accommodation sales were up 15%2, led by the increasing
maturity of our estate and continued room growth
o Total
estate RevPAR increased to €57 and our more established hotels
RevPAR was €61, outperforming the wider M&E
market3
· £150m
share buy-back: on track with 3.2m shares purchased so far for a
total consideration of £96m
· Confident in full year outlook, underpinned by our strong
commercial programme and good progress on cost
efficiencies
Comment from Dominic Paul, Chief Executive:
"Our UK trading results strengthened during the quarter and we
continued to grow accommodation sales ahead of the market.
Underpinned by the favourable supply backdrop, total accommodation
sales and RevPAR remained significantly ahead of pre-pandemic
levels. In Germany, we delivered another strong performance, led by
the increasing maturity of our estate and continued room growth.
Our cohort of more established hotels is continuing to outperform
the M&E market and we remain on course to achieve the important
milestone of reaching break-even on a run-rate basis during the
second half of 2024.
"Whilst the normal booking pattern means our forward
visibility remains limited, our forward booked position is positive
and we remain confident in the full year outlook. This reflects a
more encouraging trading performance in the UK, our strong
commercial programme and increased cost efficiencies, as well as
good progress in Germany.
"Our Accelerating Growth Plan to optimise F&B at a number
of sites and add 3,500 rooms to our UK pipeline is on track and
will increase our momentum to deliver long-term profitable growth.
With significant potential in both the UK and Germany, supported by
the structural reduction in supply and our asset-backed balance
sheet, our strategic plans are set to deliver a step change in our
performance."
Q1
FY25 summary (versus Q1 FY24)
|
UK
|
Germany2
|
Total
|
Sales growth:
|
|
|
|
Accommodation
|
0%
|
+15%
|
+1%
|
Food & beverage
|
(1)%
|
+13%
|
(1)%
|
Total
|
0%
|
+15%
|
+1%
|
Like-for-like sales
growth:
|
|
|
|
Accommodation
|
(2)%
|
+6%
|
(1)%
|
Food & beverage
|
(1)%
|
+2%
|
(1)%
|
Total
|
(1)%
|
+5%
|
(1)%
|
Notes:
1:
STR data, standard basis, 1 March 2024 to 30 May 2024, UK M&E
market excludes Premier Inn
2:
Germany sales growth in GBP
3:
STR data, standard basis, 1 March 2024 to 30 May 2024, Germany
M&E market excludes Premier Inn
Q1
performance
Having been 1% behind last year in
the first seven weeks, our trading performance strengthened during
the remainder of the quarter and accommodation sales recovered to
be in line with last year and up 55% versus FY20. While midweek
business demand and peak leisure demand remained robust, weekend
demand at short-lead was slightly softer, particularly in London,
reflecting a return to more normalised levels after what was a very
strong performance last year. However, with the strength of our
brand and the benefit of our commercial programme, we continued to
outperform the market with total accommodation sales growth 0.6pp
ahead (Q1 FY24: 0.3pp ahead) delivering a RevPAR premium of £5.62
(Q1 FY24: £6.12; Q1 FY20: £2.32).
UK F&B sales were 1% behind last
year, with strong breakfast sales driven by high occupancy in our
hotels offset by softer trading in a number of our branded
restaurants.
In Germany, total accommodation
sales were up 15% versus last year led by the increasing maturity
of our estate and continued room growth. Our total estate RevPAR
increased to €57 (Q1 FY24: €55) and our cohort of more established
hotels continued to perform ahead of the wider market, achieving a
RevPAR of €61 (Q1 FY24: €61).
Outlook
We remain confident in the full year
outlook. In the UK, recent trading has been more encouraging as we
move into the peak periods of the year and our forward booked
position remains positive. We are continuing to execute our
commercial programme and net inflation is now expected to be at the
lower end of guidance as a result of increased cost
efficiencies.
In Germany, we have launched our
first online-focused brand campaign and are trading well. We are on
course to break-even on a run-rate basis during calendar year 2024
which is a key milestone as we progress towards our longer-term
target of 10-14% return on capital.
Interim results
The Group's interim results will be
announced on 16 October 2024.
For more information please
contact:
Investor Relations - Whitbread
investorrelations@whitbread.com
Peter Reynolds, Director of Investor
Relations
peter.reynolds@whitbread.com
Sophie Nottage, Investor Relations
Manager
sophie.nottage@whitbread.com
Kirsten O'Reilly, Investor Relations
Manager
kirsten.oreilly@whitbread.com
Media - Teneo
whitbread@teneo.com
Jessica
Reid
+44
(0) 20 7353 4200
A
live Q&A teleconference for investors and analysts will be held
at 8:00am BST on 18 June 2024. Details to join are noted below. An
on-demand version of this will be made available on the website
(www.whitbread.com/investors/results-reports-and-presentations)
shortly after.
Q&A teleconference participant dial-in
numbers:
Start time - 8:00am BST
United Kingdom (Local): 020 3936
2999
Participant Access Code:
630351
Appendix
1) Premier Inn UK
key performance indicators
|
|
|
FY24
|
|
|
FY25
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q12
%
|
London
|
|
|
|
|
|
|
|
Occupancy (full inventory)
|
81.2%
|
86.7%
|
86.3%
|
78.0%
|
83.0%
|
78.6%
|
(2.6)pp
|
Average room rate (£)
|
111.71
|
116.39
|
115.78
|
94.10
|
109.78
|
109.12
|
(2.3)%
|
Revenue per available room
(£)
|
90.76
|
100.91
|
99.90
|
73.43
|
91.17
|
85.77
|
(5.5)%
|
Total accommodation sales
(£m)
|
120.8
|
134.6
|
133.7
|
99.9
|
489.0
|
120.0
|
(0.6)%
|
|
|
|
|
|
|
|
|
Regions
|
|
|
|
|
|
|
|
Occupancy (full inventory)
|
83.1%
|
85.9%
|
84.7%
|
74.5%
|
82.0%
|
82.6%
|
(0.5)pp
|
Average room rate (£)
|
71.06
|
84.38
|
75.07
|
61.10
|
73.30
|
71.00
|
(0.1)%
|
Revenue per available room
(£)
|
59.06
|
72.49
|
63.55
|
45.50
|
60.12
|
58.66
|
(0.7)%
|
Total accommodation sales
(£m)
|
372.0
|
456.7
|
401.3
|
288.7
|
1,518.7
|
374.1
|
0.6%
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
Occupancy (full inventory)
|
82.8%
|
86.0%
|
84.9%
|
75.1%
|
82.2%
|
81.9%
|
(0.9)pp
|
Average room rate (£)
|
78.02
|
90.01
|
82.30
|
67.15
|
79.76
|
77.59
|
(0.6)%
|
Revenue per available room
(£)
|
64.59
|
77.45
|
69.90
|
50.43
|
65.56
|
63.54
|
(1.6)%
|
Total accommodation sales
(£m)
|
492.8
|
591.3
|
534.9
|
388.7
|
2,007.7
|
494.1
|
0.3%
|
|
|
|
|
|
|
|
|
Total accommodation sales growth vs
M&E market1
|
+0.3pp
|
+3.9pp
|
+5.4pp
|
+1.5pp
|
+3.1pp
|
+0.6pp
|
+0.3pp
|
RevPAR premium vs M&E
market1
|
+£6.12
|
+£7.27
|
+£6.49
|
+£4.08
|
+£5.95
|
+£5.62
|
£(0.50)
|
|
|
|
|
|
|
|
|
F&B
|
|
|
|
|
|
|
|
Total food and beverage sales
(£m)
|
193.7
|
201.4
|
187.9
|
179.2
|
762.0
|
191.0
|
(1.4)%
|
|
|
|
|
|
|
|
|
Total UK sales (£m)
|
686.5
|
792.6
|
722.8
|
567.9
|
2,769.7
|
685.2
|
(0.2)%
|
2) Premier Inn
Germany key performance indicators
|
|
|
FY24
|
|
|
FY25
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full Year
|
Q1
|
Q12
%
|
Occupancy (full inventory)
|
64.5%
|
64.0%
|
65.8%
|
53.4%
|
61.8%
|
64.6%
|
0.2pp
|
Average room rate (€)
|
84.81
|
80.12
|
90.53
|
75.45
|
83.07
|
87.88
|
3.6%
|
Revenue per available room
(€)
|
54.67
|
51.29
|
59.59
|
40.28
|
51.36
|
56.79
|
3.9%
|
Total accommodation sales
(€m)
|
46.2
|
47.3
|
56.3
|
38.2
|
188.0
|
54.3
|
17.6%
|
Total food and beverage sales
(€m)
|
7.7
|
8.3
|
9.0
|
6.9
|
31.8
|
8.8
|
15.3%
|
Total sales (€m)
|
53.8
|
55.6
|
65.3
|
45.1
|
219.8
|
63.1
|
17.3%
|
Notes:
1:
STR data, standard basis, 1 March 2024 to 30 May 2024, M&E
market excludes Premier Inn
2:
Sales growth versus FY24