Premier Inn owner Whitbread PLC (LSE:WTB) will be looking to keep on its upward trajectory when it reports third-quarter results on Thursday 11 January.
Numerous brokers have upgraded the hospitality group to a ‘buy’ over the last year and it has rewarded its faithful with share price gains of around 35%, buyback programmes worth £300 million and robust sales during periods of weakened demand.
In recent months the Harvester and Brewers Fayre owner has received bullish ratings from the likes of Barclays, Jefferies and Liberum.
An effective pricing strategy has been a key catalyst for 2023’s growth according to experts.
The group has been able to straddle the line between implementing price increases and remaining affordable during a time when people are looking to save as much as possible.
However, a key area for debate is whether the group can maintain this going forward.
Another area of contention is the group’s German-based business, which is in its infancy and still looking to break even.
Focused solely on expansions of the Premier Inn brand, the company has been attempting to bring demand back to pre-pandemic levels.
A slip in German RevPAR, a key revenue metric for hotels, initially appeared as a large setback in its search for profitability.
However management, which will welcome a new German CEO in January, is confident 2024 will be the year it reaches its break-even milestone.
Shares in Whitbread started 2024 close to flat, trading at around 3,630p.