Whitbread PLC (LSE:WTB) shares were among the highest risers on the FTSE 100 on Thursday after the Premier Inn owner reported continued growth in its UK and German hotels.
Total revenue per available room (revpar) in the third quarter was up 21% on the same period a year earlier and 27% versus the pre-pandemic period, driven by a strong performance across London and in the regions.
Group accommodation sales jumped 45% on pre-pandemic levels as UK accommodation sales rose 37% and Germany was rocketed 770%, with 45 Premier Inn hotels open now open in Germany and a further 36 in the pipeline.
On the outlook, pricing is expected to remain strong, given the struggles of the wider market, answering another of the questions analysts were mulling ahead of the update.
Outgoing chief executive Alison Brittain said: “Despite a more challenging period for the UK economy, our winning business model continues to deliver outstanding value and quality for our guests.
“The strength of our forward booked position, robust pricing, estate growth and efficiency programme all underpin our confidence in the outlook for FY24.”
After seven years she is handing over to incoming CEO Dominic Paul.
This third-quarter performance was consistent with the second and the group has also maintained its strong outperformance versus the midscale and economy market, broker Shore Capital noted.
“Given the continued strength in trading, confident outlook statement and no further change in cost guidance, we see scope to nudge up our [full-year profit before tax] estimate of £344mln, which is predicated on revpar moderating to low 20% growth at the back end of the year. We are likely to increase to circa £390mln.”
Whitbread shares jumped 4.38% to 2,980p in morning trade.