In presentations delivered at its annual Capital Markets Day, the FTSE 100-listed firm, also forecast a further £220mln in savings over the next three years and predicted that its German operations would be profitable in fiscal year 2022.
Whitbread began a programme of share buybacks last month, targeting £500mln in purchases but said it would now return at least £2.5bn to shareholders.
The company also said it was seeking to double its long-term network potential to more than 170,000 hotel rooms in the UK and internationally, with at least 110,000 of those rooms seen in the UK.
It added that it was targeting growth in Germany through investment in freehold and leasehold properties, combined with further acquisitions, to at least 60,000 rooms over the longer-term.
In afternoon trading, Whitbread shares were 2.3% higher at 4,870p, also bolstered by an increase in price target from Liberum Capital in a note published this morning.
The City broker’s analysts said the target hike was based on valuation grounds but added that they hope to see “more strategic clarity” from Whitbread’s bosses at today’s investor event if it is to change its current ‘hold’ recommendation.