Whitbread PLC, the owner of Premier Inn, has released its preliminary results for the financial year ending February 27, 2025. The report outlines the companys financial performance and provides an overview of its operations in the UK and Germany. Here is a summary of the key points
Financial Highlights
Group statutory revenue decreased by 1% to £2.92 billion, reflecting lower food and beverage (F&B) revenues due to the Accelerating Growth Plan (AGP) and softer UK market demand.
Adjusted profit before tax was £483 million, a decrease of 14% from the previous year, impacted by AGP, cost inflation, and lower interest income, partially offset by increased cost savings and progress in Germany.
Statutory profit before tax was £368 million, a decrease of 19% from the previous year, after charging £116 million in adjusting items.
The company plans to return more than £2 billion to shareholders through share buy-backs and dividends.
Operational Highlights
Premier Inn UKTotal accommodation sales were in line with the previous year, and the brand outperformed the M&E market by +0.7%. Revenue per available room (RevPAR) decreased by 2%, but Premier Inn maintained a healthy RevPAR premium of £5.49.
UK F&B sales fell by 11% due to the impact of AGP, partially mitigated by strong breakfast sales.
Premier Inn GermanyThe estate outperformed the M&E market, with total sales growing by 21%. The adjusted loss before tax reduced to £11 million, and the company is on track to deliver its first positive adjusted profit before tax in FY26.
Strategic Initiatives
Accelerating Growth PlanThe plan to optimize F&B offerings and unlock 3,500 new extension rooms is progressing well. The company expects a full reversal of the FY25 adjusted profit before tax impact during FY26.
UK Network Expansion1,075 new rooms were opened in FY25, and the company expects to open 1,000-1,200 rooms in FY26, with a target of 98,000 open rooms in the UK and Ireland by FY30.
Strong Commercial ProgramNew initiatives contributed to outperformance against the market and positive UK like-for-like sales momentum.
EfficienciesThe company delivered £75 million in cost savings in FY25 and increased its FY26 guidance to £60 million, aiming for £250 million in savings by FY30.
GermanyThe company is on track to deliver adjusted profit before tax of £5-£10 million in FY26 and reach 20,000 open rooms and at least £70 million in adjusted profit before tax by FY30.
Current Trading and Outlook
Premier Inn UKTotal accommodation sales were down 1% in the seven weeks to April 17, 2025, but the brand outperformed the M&E market by 2% on both accommodation sales and RevPAR growth.
UK F&BSales were 16% behind FY25, reflecting the removal of lower-returning branded restaurants, in line with expectations.
Premier Inn GermanyTotal accommodation sales were up 23% in the same period, with total estate RevPAR ahead of the M&E market.
The company provided FY26 guidance, including UK and Germany room openings, cost efficiencies, AGP impact, and net finance income.
The company remains positive about the medium-term outlook and is confident in delivering its Five-Year Plan, which includes generating at least £300 million in incremental adjusted profit before tax by FY30 and releasing more than £2 billion for share buy-backs and dividends.