FTSE 100-listed owner of Premier Inn, Whitbread PLC (LSE:WTB), copped an upgrade after exhibiting robust performance in its third quarter, as highlighted in a recent broker note from Liberum.
Premier Inn significantly outperformed the competition with its fully integrated model, said analysts, as evidenced by the 9% year-over-year increase in revenues per available room (RevPAR).
Whitbread’s sales saw a significant uptick, with group-wide sales in the third quarter growing by 11% year over year and UK accommodation sales rising by 11%.
This growth is not limited to the UK alone; Whitbread has also made notable strides in the German market, where it reported a 47% increase in total sales year over year.
This progress keeps the company firmly on track to achieve its goal of breaking even in Germany by 2024, said Liberum
Liberum has therefore increased the target price for Whitbread to 4,680p (from 4580p), reflecting minor changes to earnings and continued strong pricing and expansion opportunities.