In key news on UK stocks, hotel group Whitbread PLC (GB:WTB) reported resilient performance for the first quarter of Fiscal 2025 (ended May 30, 2024) and maintained its full-year guidance. The first-year sales grew 1% to £739 million, thanks to the improved performance in the U.K. operations and continued momentum in Germany. WTB shares were up 3% as of writing.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
More on Whitbread’s Q1 Results
Whitbread, which owns the Premier Inn chain, experienced a 1% rise in overall Accommodation sales. The company’s Accommodation sales in Germany saw a 15% growth, while the metric was flat in the UK market.
The company stated that Accommodation sales in the UK market were impacted by slightly softer demand over the weekends compared to solid midweek business and leisure demand. It attributed the impressive growth in Germany’s Accommodation sales to “increasing maturity of our estate and continued room growth.”
Meanwhile, Whitbread’s Food and Beverage sales fell 1% in Q1 2025, as the 13% growth in Germany was offset by the 1% decline in UK sales. The company’s UK Food and Beverage sales were impacted by subdued business in a number of branded restaurants.
In the Premier Inn UK business, RevPAR (revenue per available room), a key metric in the hotel industry, lagged the prior-year figure by 2% but surpassed the FY20 level by 38%. Total estate RevPAR in Germany improved to €57 from €55.
The Road Ahead
Whitbread is confident about continued improvement. In Germany, the company expects to reach break-even on a run-rate basis in the second half of this year. CEO Dominic Paul stated that the company’s advance booking position is positive and indicates encouraging results in the UK and continued momentum in Germany.
The company aims to boost its prospects by enhancing its Food and Beverage business at a number of locations and expanding its UK pipeline by 3,500 rooms. Overall, the company remains optimistic about achieving its full-year guidance.
Is Whitbread Stock a Good Buy?
With nine Buys and two Holds, Whitbread stock scores a Strong Buy consensus rating on TipRanks. The average WTB stock price target of 4,015p implies about 34% upside potential. Shares have declined by more than 16% year-to-date.
