REG - Whitbread PLC - Response to UK Government Budget & trading update

WhitbreadAnnouncement

28/11/2025 12:00

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RNS Number : 4809J  Whitbread PLC  28 November 2025

 

Response to UK Government's Budget and trading update

 

Whitbread PLC issues the following statement, noting the measures announced as
part of the UK Government's 2025 Budget ('UK Budget'), ahead of the Q3 Trading
Update on 13 January 2026.

 

Q3 trading and FY26 outlook

·      In the UK, the return to market growth has continued into the
third quarter and we continue to trade well with positive RevPAR growth and
our forward bookings remain ahead of last year

·      In Germany, market demand has stepped up since the second
quarter, supported by a strong events calendar, and we continue to outperform
the market

·      There is no change to our previously announced FY26 guidance and
we remain confident in the full year outlook

 

UK Budget and FY27 cost guidance

·      This week's UK Budget included a number of changes that are
expected to impact the Group's future financial performance, particularly
significant increases in the rateable values for many hotels prompting a large
increase in business rates

·      Whilst we are still finalising the precise details, we are now in
a position to give guidance on how we expect the changes to business rates
will take effect in FY27; our preliminary estimate is that there will be an
impact of between £40m and £50m

·      Including the estimated impact of the UK Budget, we now expect
gross UK cost inflation (including business rates) to be between 7% and 8% on
our £1.7bn UK cost base. However, with accelerated efficiencies of £60m, net
UK cost inflation is now expected to be between 3.5% and 4.5%

 

Comment from Dominic Paul, Whitbread Chief Executive:

 

"In the UK, we are pleased that we have seen positive RevPAR growth in the
third quarter. In Germany, demand has stepped up since the second quarter and
we remain confident in reaching profitability this year.

 

"We are extremely disappointed with the outcome of this week's UK Budget which
will have a significant impact on our business and the wider hospitality
industry. However, we have a strong track record of responding to inflationary
headwinds by adapting our business and over time, we are well placed to
mitigate their impact through careful management of our cost base and the
delivery of significant cost efficiencies. To help mitigate the estimated
impact of these changes, we will deliver accelerated cost efficiencies of
£60m in FY27. Over the coming weeks and months, we will be exploring a
variety of options in order to further drive profits, margins and returns."

 

 

For more information please contact:

 Investor Relations - Whitbread                  investorrelations@whitbread.com (mailto:investorrelations@whitbread.com)
 Peter Reynolds, Director of Investor Relations  peter.reynolds@whitbread.com
 Kirsten O'Reilly, Investor Relations Manager    kirsten.oreilly@whitbread.com (mailto:kirsten.oreilly@whitbread.com)
   Kitty Hobhouse, Investor Relations Manager    kitty.hobhouse@whitbread.com (mailto:kitty.hobhouse@whitbread.com)

 Media - Brunswick                               whitbread@brunswickgroup.com
 Tim Danaher                                     +44 (0) 20 7404 5959

 

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