REG - Whitbread PLC - Preliminary Results Announcement
Today 07:02
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RNS Number : 4765C Whitbread PLC 30 April 2026
This announcement contains inside information
UK accommodation sales up versus FY25; continued market outperformance
Premier Inn Germany achieves key profitability milestone
Extension of the Accelerating Growth Plan to include all remaining branded
restaurants
Announcement of New Five-Year Plan
Throughout this release, all percentage growth comparisons are made by
comparing the current period performance (FY26) for the 52 weeks to 26
February 2026 with FY25 (52 weeks to 27 February 2025).
FY26 Group Financial Summary
£m FY26 FY25 vs FY25
Statutory revenue 2,920 2,922 0%
Adjusted EBITDAR(†) 1,074 1,030 4%
Adjusted profit before tax(†) 483 483 0%
Statutory profit before tax 298 368 (19)%
Statutory profit after tax 213 254 (16)%
Adjusted basic EPS(†) 208.5p 194.6p 7%
Statutory basic EPS 123.3p 141.5p (13)%
Dividend per share 97.0p 97.0p -
Group ROCE(†) 11.1% 11.3% (20)bps
Net debt(†) (709) (483) (226)
Lease-adjusted leverage(†) 3.3x 3.0x n/a
Overview
· The Group continued to outperform the midscale and economy
('M&E') market in both the UK and Germany on total accommodation sales and
RevPAR growth(1)
· Group statutory revenue was in line with last year, reflecting
positive growth in UK and Germany accommodation sales, offset by the expected
lower food and beverage ('F&B') revenues as a result of the Accelerating
Growth Plan ('AGP')
· Adjusted EBITDAR(†) was up 4%, despite significant external
headwinds and reflects the benefits of our vertically integrated model, the
strength of our brand and the impact of our technology-led commercial
initiatives, highlighting the quality and resilience of our business
· Adjusted profit before tax ('PBT')(†) of £483m (FY25: £483m)
reflects a positive trading performance, accelerated cost efficiencies and a
marked increase in German profitability, offset by high cost inflation and
interest costs; adjusted basic EPS(†) was 208.5p (FY25: 194.6p)
· Statutory profit before tax of £298m (FY25: £368m) was after
charging £185m of adjusting items (FY25: £116m) that primarily related to
£130m of impairment charges associated with the AGP, other non-cash and net
impairment charges of £32m; statutory basic EPS was 123.3p (FY25: 141.5p)
· During the year, the Group completed £313m of property-related
disposals, including £282m of sale and leasebacks at an average net initial
yield of 5.4%
· The Group's previously announced £250m share buy-back completed
on 25 February 2026, with a total of 8.8m shares purchased and subsequently
cancelled
· The Board is recommending a final dividend of 60.6p per share
(FY25: 60.6p) making 97.0p for the year (FY25: 97.0p)
New Five-Year Plan
· As set out in a separate announcement today, following the
unexpected impact of business rates, a material increase in employment costs
and the completion of a detailed business review, we have announced a New
Five-Year Plan that will result in a material step up in margins and returns
by FY31
· The plan includes: a reallocation of capital to fund the proposed
extension of the AGP(2) to replace all remaining branded restaurants with a
more efficient and tailored F&B offering for our guests; a reduced and
refocused capital programme in the UK and Germany; an increase in cost
savings; and a material reduction in the capital intensity of the business,
including recycling more freehold property into growth projects
· In FY27, the extension of the AGP to include all remaining 197
branded restaurants will reduce total F&B sales by £140m - £160m as we
transition to our new integrated format and exit those sites marketed for
sale. There will be a £40m reduction in profits as we transition the
remaining branded restaurants, which will more than offset positive progress
from our original AGP, resulting in a net £10m reduction to profits
1: STR data, standard basis, 28 February 2025 to 26 February 2026, UK and
Germany M&E markets excluding Premier Inn
2: Proposal is subject to employee consultation
Financial highlights
• Premier Inn UK: total accommodation sales and RevPAR both increased
by 1%, reflecting a return to market growth from the second quarter; the
strength of our brand and commercial programme meant we outperformed the
M&E market(1) by +1pp on RevPAR growth and increased our RevPAR premium to
£5.88
• UK F&B sales fell 8%, which was slightly better than expected
due to the timing of branded restaurant disposals
• UK segment adjusted pre-tax profit margins(†) were 18.8% (FY25:
18.8%), reflecting a strong trading performance, the expected reversal of FY25
one-off costs relating to the AGP, and accelerated cost efficiencies of
£83m(2) (FY25: £75m), offset by higher than expected cost inflation
• Premier Inn Germany: total sales grew by 13% and we strengthened our
outperformance versus the M&E market(3), driven by the growing maturity of
our hotels and brand, as well as the positive impact of our commercial
initiatives; segment adjusted PBT(†) was £2m (FY25: £11m loss)
• Group: adjusted EBITDAR(†) increased to £1,074m (FY25: £1,030m)
• Group: adjusted profit before tax(†) was £483m (FY25: £483m) and
statutory profit before tax was £298m (FY25: £368m) after charging £185m of
adjusting items (FY25: £116m) including £130m of accelerated depreciation
and impairments in relation to the AGP and other non-cash, net impairment
charges of £32m
• Total cash returned to shareholders via dividends and share
buy-backs in FY26 was £419m (FY25: £442m). Since April 2023, the Group has
returned a total of £1.6bn
• Strong balance sheet: lease adjusted leverage(†4) of 3.3x (FY25:
3.0x) and net debt(†) of £709m (FY25: £483m) reflecting lower cash
balances following the completion of the £250m share buy-back
1: STR data, standard basis, 28 February 2025 to 26 February 2026, UK M&E
market excluding Premier Inn
2: Total cost efficiencies delivered in FY26, after the removal of
non-recurring structural savings
3: STR data, standard basis, 28 February 2025 to 26 February 2026, Germany
M&E market excluding Premier Inn
4: Aligned to Fitch definition and methodology
Segment highlights
Premier Inn UK
£m FY26 FY25 vs FY25
Statutory revenue 2,659 2,691 (1)%
Segment adjusted profit before tax(†) 499 507 (2)%
Revenue per available room(†) £64.81 £64.42 1%
Premier Inn Germany(1)
£m FY26 FY25 vs FY25
Statutory revenue 261 231 13%
Segment adjusted profit / (loss) before tax(†) 2 (11) >100%
Revenue per available room(†) £54.19 £50.90 6%
1: Using a GBP:EUR exchange rate of 1.16
Current trading(1)
• Premier Inn UK
• Total accommodation sales and RevPAR were up 1.9% and 0.9%
respectively versus FY26, outperforming the market, with a particularly strong
performance in London
• Our forward booked position is ahead of last year, supported by
peak leisure demand and a strong events calendar
• F&B: sales were 4.2% lower than FY26, reflecting the exit from
a number of lower-returning branded restaurants, mitigated by a positive
performance from our integrated restaurants
• Premier Inn Germany
• Total accommodation sales up 9.0% in local currency versus FY26,
with the positive impact of continued estate growth. The market has been
impacted by a reduced events profile versus last year and increased occupancy
levels were more than offset by lower room rates, resulting in total estate
RevPAR of €60 and RevPAR for our cohort of 17 more established hotels(2) of
€68
• We continued to outperform the market on both accommodation sales
and RevPAR growth
• Our forward booked position is ahead of last year, and we are
confident that we can drive further RevPAR growth
1: Eight weeks to 23 April 2026
2: Cohort of 17 more established German hotels that were open and trading
under the Premier Inn brand for 12 consecutive months as at 4 March 2022
FY27 guidance
• UK
• Sales: every 1% change in like-for-like(†) accommodation sales
versus FY26 has a £16.5m - £17.5m impact on profit before tax; and every 1%
change in total F&B sales(1) versus FY26 has a c.£1m impact on profit
before tax
• Inflation: gross inflation is expected to be at the top end of our
previously guided range of 6.5% - 7.5% on our £1.7bn UK cost base; including
the changes to business rates that will result in an impact of c.£35m; net
inflation is expected to be at the top end of our previously guided range of
3% - 4% after cost efficiencies of £60m
• New rooms: c.1,000 new rooms (of which 80% will be freehold) and
c.750 AGP extension rooms with the majority of all new rooms opening in the
second half of the year
• Extension of the Accelerating Growth Plan, subject to employee
consultation, to include all remaining 197 branded restaurants(2):
o Total F&B sales: reduction of between £140m and £160m as we
transition to our new integrated format and exit those sites marketed for sale
o Adjusted PBT(†): there will be a £40m reduction as we transition
the remaining branded restaurants, which will more than offset positive
progress from our original AGP, resulting in a net £10m reduction
• Germany
• New rooms: c.2,300
o c.1,000 of organic room openings of which 30% will be leasehold
o c.1,300 of new room openings, of which 100% will be leasehold,
associated with recent additions to our portfolio
• Adjusted PBT(†3): c.£10m increase versus FY26, before one-off
costs of c.£10m primarily in relation to new openings in FY27 associated with
recent additions to our portfolio
• Central
• Adjusted PBT(†): £5m reduction as a result of the impact of the
ongoing geopolitical tensions in the Middle East on the hotels operated by our
joint venture
• Balance sheet
• Net capex: £200m - £300m
• Gross capex: £700m - £750m (including £200m - £250m relating
to the extended AGP)
• Proceeds from property transactions: £450m - £500m, including
sale and leasebacks and disposals
1: F&B sales excluding sites impacted by the AGP for which separate
guidance is provided
2: 197 sites to be converted, FY26 results: revenue £284m and adjusted loss
before tax £(13)m, plus associated central overheads of £10m
3: Using a GBP: EUR exchange rate of 1.15
Outlook
Our forward booked position is ahead of last year and we continue to see
positive trading momentum. While we have limited visibility of short-term
market demand and inflation, including the potential impact of the ongoing
geopolitical tensions in the Middle East, our vertically integrated model
means we have significant self-help levers to drive positive
like-for-like(†) sales momentum whilst also reducing our costs. By focusing
on what we can control, we are confident that we will extend our
market-leading position in the UK, accelerate returns in Germany and deliver
long-term value creation for shareholders.
Commenting on today's results, Dominic Paul, Whitbread Chief Executive, said:
"In the UK, we made excellent progress on each of our strategic initiatives
and Premier Inn again outperformed the wider market, supported by the strength
of our customer offer and the benefits of our commercial programme.
"FY26 was a breakthrough year for Germany, delivering our first annual profit
- a major milestone for the Group. The quality and value of our customer offer
is driving high guest scores and our brand awareness continues to increase,
underpinning our strong outperformance versus the rest of the market.
"I'd like to thank our colleagues across the Group for their hard work in
delivering this performance. Against a challenging consumer and macroeconomic
backdrop, we continue to deliver material cost savings and plan to drive more
in FY27, while delivering a fantastic service for our guests.
"As set out in a separate announcement today, our New Five-Year Plan is a
significant step for the Group. Whilst the proposed extension of the
Accelerating Growth Plan will impact profits in FY27, our new plan will make
our assets work harder while creating a stronger, higher-returning business
that delivers for our guests, teams and shareholders.''
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
Media -
Brunswick
whitbread@brunswickgroup.com (mailto:whitbread@brunswickgroup.com)
Tim Danaher
+44 (0) 20 7404 5959
( )
The person responsible for arranging the release of this announcement on
behalf of the company is Clare Thomas, General Counsel and Company Secretary.
Presentation and webcast
For invited analysts and investors, the Group is hosting a Full Year 2026
Results presentation, including a briefing on our New Five-Year Plan at
10.00am BST today, 30 April 2026. A live webcast of the presentation and
briefing will be available from 10.00am BST via www.whitbread.co.uk/investors
(http://www.whitbread.co.uk/investors) . To pre-register for the webcast,
please visit: https://whitbreadevent.connectid.cloud
(https://whitbreadevent.connectid.cloud/) . A copy of the slides as well as a
replay of the presentation and briefing will be available on our website later
today.
( )
(†)Alternative performance measures
We use a range of measures to monitor the financial performance of the Group.
These measures include both statutory measures in accordance with IFRS and
alternative performance measures ('APMs') which are consistent with the way
that the business performance is measured internally. We report adjusted
measures because we believe they provide both management and investors with
useful additional information about the financial performance of the Group's
businesses.
Adjusted measures of profitability represent the equivalent IFRS measures
adjusted for specific items that we consider relevant for comparison of the
financial performance of the Group's businesses either from one period to
another or with other similar businesses. APMs are not defined by IFRS and
therefore may not be directly comparable with similarly titled measures
reported by other companies. APMs should be considered in addition to, and are
not intended to be a substitute for, or superior to, IFRS measures. Further
information can be found in the glossary and reconciliation of APMs at the end
of this document.
Chief Executive's Review
Group Results
The Group delivered a positive performance in FY26, outperforming the M&E
market in both the UK and Germany on total accommodation sales and RevPAR
growth(1). Group statutory revenue was flat year-on-year at £2,920m (FY25:
£2,922m) reflecting a recovery in UK accommodation sales from the second
quarter and positive momentum in Germany, offset by lower F&B revenues as
a result of the AGP.
We have an excellent track record of responding to inflationary headwinds over
time and in FY26 we delivered better than expected cost efficiencies of
£83m(2) (FY25: £75m), mitigating significant cost pressures, including above
inflationary increases in national living wage, national insurance and F&B
costs. These savings, combined with the impact of our shift towards a more
efficient F&B model as part of the AGP, resulted in a 2% reduction in
adjusted operating costs, driving a 4% increase in adjusted EBITDAR to
£1,074m (FY25: £1,030m). This performance was despite significant external
headwinds and reflects the power of our vertically integrated model, the
strength of our brand and the impact of our commercial initiatives,
highlighting the quality and resilience of our business.
Net finance income (excluding lease liability interest) reduced to £11m
(FY25: £20m) reflecting lower interest receivable on the Group's cash
balances. Higher lease liabilities and rent reviews increased both lease
interest and right of use asset depreciation to £177m (FY25: £167m) and
£209m (FY25: £194m) respectively, resulting in adjusted profit before
tax(†) of £483m (FY25: £483m). Adjusting items totalled £185m (FY25:
£116m), driven primarily by £130m of impairment charges associated with the
AGP and other non-cash and net impairment charges of £32m, resulting in
statutory profit before tax of £298m (FY25: £368m). A tax charge of £86m
(FY25: £114m) meant that statutory profit after tax was £213m (FY25:
£254m).
Adjusted basic earnings per share(†) increased by 7% to 208.5p (FY25:
194.6p) reflecting the reduced weighted average number of shares following
share buy-backs over the last twelve months. Statutory basic earnings per
share decreased by 13% to 123.3p (FY25: 141.5p).
During the year, the Group completed £313m of property-related disposals,
including £282m of sale and leasebacks at an average net initial yield of
5.4%.
Further detail on the drivers behind the Group's performance is set out below.
1: STR data, standard basis, 28 February 2025 to 26 February 2026, UK and
Germany M&E market excluding Premier Inn
2: Total cost efficiencies delivered in FY26, after the removal of
non-recurring structural savings
Premier Inn UK - continued market outperformance
Premier Inn UK accommodation sales increased by 1% reflecting a strong
recovery from the second quarter and continued outperformance versus the wider
M&E market(1). We ended the year +0.3pp ahead of the market on total
accommodation sales growth and +1.1pp ahead on RevPAR growth, maintaining a
healthy RevPAR premium of £5.88.
Total Average Room Rate ('ARR') increased by 3% to £81.95 (FY25: £79.52) and
occupancy remained high at 79.1% (FY25: 81.0%), with the result that RevPAR
was up 1%. In London, increased leisure demand, supported by a positive events
calendar and a strong festive period, contributed to both higher ARR and
accommodation sales, up 3% and 4% respectively. In the Regions, a 3% increase
in ARR was broadly offset by slightly lower occupancy of 79.0% (FY25: 81.1%),
with the result that total accommodation sales were flat year-on-year.
Total UK F&B revenue reduced by 8% as we transition a number of our lower
returning branded restaurants into a more efficient, integrated F&B
offering. Although F&B performance was slightly better than expected due
to the timing of branded restaurant disposals, total UK statutory revenue was
down 1% year-on-year.
1: STR data, standard basis, 28 February 2025 to 26 February 2026, UK M&E
market excluding Premier Inn
The following external and internal factors were important drivers for our UK
business over the past year:
· UK market demand: After a softer start to the year, the UK
returned to market growth during the second quarter, supported by robust
leisure demand that was boosted by a strong events calendar in July and
August. Positive momentum continued through the rest of the year, with good
levels of demand over the Christmas and New Year period. Our strong market
position and proprietary pricing model meant that we outperformed the market
on accommodation sales and RevPAR and our occupancy remained high, albeit
marginally below last year. We delivered good revenue growth through our
business to business ('B2B') channels with Business Booker and Travel
Management Companies ('TMCs') performing well.
· Muted supply growth: Our latest market analysis of UK hotel
rooms confirms that the supply backdrop has remained muted since the pandemic.
Hotel construction starts are expected to plateau this year and while the
branded budget sector, including Premier Inn, is expected to grow over the
next few years, we maintain our view that the independent hotel sector will
continue to decline. As a result, we expect that the total UK market will not
return to 2019 levels of supply(1) until at least 2028, which is slightly
later than our previous estimate. Our supply analysis was completed prior to
the onset of the geopolitical tensions in the Middle East. Therefore, should
this impact new hotel development in the UK, our estimates regarding future
supply growth may prove conservative.
1: Company data
· Accelerating Growth Plan ('AGP'): During the year, we made great
progress against our original plan to optimise the delivery of F&B for our
guests across a number of sites. This includes the conversion of lower
returning branded restaurants into a more efficient F&B offering, while
also unlocking new, higher returning extension rooms. Of those included in the
original plan, 31 sites and 583 extension rooms opened during the year, with
encouraging early performance across both the new extension rooms and the
integrated F&B offering. As at 26 February 2026, planning applications had
been submitted for c.90% of affected sites, with permission approved for
c.70%, and c.40% either completed or currently in progress. We have also
concluded the sale of 51 branded restaurants for a total consideration of
£50m, with a further 60 sites where we have agreed terms of sale, subject to
conditions.
· Network expansion: Premier Inn is the UK's largest and best-known
hotel brand, with a 12% share of the total UK hotel market and nearly 850
hotels open across the UK and Ireland. Our flexible approach to property
ownership means we are able to take on either freehold or leasehold sites,
provided they meet our returns thresholds. This approach helps us secure
high-quality sites in the best locations, supporting continued expansion and
reinforcing our market-leading position. During the year, we opened 1,190 new
rooms, including extensions room as part of the AGP. We closed 592 rooms as
part of our estate optimisation programme, including both lower returning
rooms and those impacted by the AGP. As at 26 February 2026, we had 846 hotels
(FY25: 852) and 86,582 rooms open (FY25: 85,984), while our new rooms
committed(1) increased to 7,906 rooms (FY25: 7,210), of which the majority are
freehold, plus an additional 1,141 committed AGP extension rooms(2).
1: UK and Ireland committed pipeline excluding extension rooms from the
Accelerating Growth Plan
2: Planning approval received for the Accelerating Growth Plan extension rooms
with Board approval to progress
· Efficiency programme: We have a strong track record of unlocking
material cost efficiencies, helping to offset inflationary pressures across
our UK cost base. With further savings from the transformation of our F&B
distribution model and the deployment of new technology in areas including
guest support and labour forecasting, we were able to accelerate savings and
delivered better than expected cost efficiencies of £83m(1).
1: Total cost efficiencies delivered in FY26, after the removal of
non-recurring structural savings
· Commercial programme: We have a wide range of commercial
initiatives that are focused on driving like-for-like sales(†) momentum to
support and extend our market-leading position in the UK. Highlights of these
initiatives during FY26 include:
o Refining marketing strategies: We have maintained our market-leading high
brand awareness of over 90% in the UK(1). We continued to refine our marketing
to drive cost-effective customer acquisition and support growth through
expanding demand channels and leveraging our strong brand position in
AI-powered search. Since the year end, we have also launched our new Premier
Inn integrated media campaign, 'You know what you're getting', reinforcing the
consistency and reliability of our offer across brand, digital and social
channels. The campaign went live in mid-March and is landing positively in the
market.
1: UK YouGov Brand Awareness as at 26 February 2026 based on a nationally
representative 52-week moving average
o Expanding distribution channels: During the second half, we launched
'Premier Inn Business', bringing together our Business Booker and Business
Account programmes into a single offering designed to enhance the user
experience, grow our presence in the business market and drive loyalty. The
proposition is resonating well with business guests, reflected in year-on-year
revenue growth of 7%. We also strengthened our relationships with several
travel management companies ('TMCs'), and together with 'Premier Inn
Business', these channels represented approximately 22% of FY26 UK
accommodation sales (FY25: 21%). Whilst direct distribution remains our core
channel, we also introduced the use of inbound-only online travel agents
('OTAs') which have performed well and are driving incremental international
demand.
o Optimising revenue management: At the core of our vertically integrated
model is our proprietary automated trading engine ('ATE') that seeks to
maximise revenue for any given level of demand, helping us to stay ahead of
the wider M&E market. During FY26, we undertook a detailed benchmarking
exercise comparing ATE against several third-party alternatives, which
reaffirmed that ATE remains a source of significant competitive advantage.
o Increasing ancillary revenue: The flexibility of our cloud-based
reservation system means we can drive incremental revenue by offering a range
of additional options for our guests. Options such as early check-in, late
check-out and upgraded room types, including 'Premier Plus' and 'Room with a
View', are helping to support an uplift in RevPAR. Others, including parking
and high-speed Wi-Fi, as well as the sale of Premier Inn beds and bedding for
guests who want to enjoy a great night's sleep at home, drive Premier Inn
non-room revenue, which increased 21% year-on-year to £34m in FY26.
o Enhancing guest engagement through a better digital experience: We
continue to enhance the guest booking journey by optimising both our website
and app functionality. The Premier Inn app is increasingly central to how our
guests book and stay with us, with improvements in satisfaction, channel share
and revenues. As the majority of our guests book direct, we have built up a
large and active database of 7.3 million customers, up from 5.6 million in
FY25. Through leveraging this data to enhance our CRM and promotional
capabilities, including targeted campaigns, we have increased guest engagement
and driven CRM revenue growth of 15% in FY26. Having rolled out our new
self-service check-in kiosks across part of our estate, a growing proportion
of check-ins are now completed through kiosks, enabling a better guest
experience and improved labour efficiency and, in some of our larger hotels,
the majority of check-ins are now self-served.
o Best-in-class operations: The quality and consistency of our guest offer
underpin our position as the UK's number one hotel brand and 'Best Value Hotel
Chain'(1). To maintain this position, we continue to invest in our estate,
including the roll-out of our new standard room (ID5) and Premier Plus room
formats, as well as through our ongoing maintenance programmes. These include
targeted upgrades including new beds, pillows and signage as well as
enhancements to our Wi-Fi network, all of which contribute to a consistent and
high-quality guest experience. We also remain committed to supporting our
teams so they can continue to deliver excellent service for our guests. By
investing in competitive pay, training and development, we maintain high
levels of engagement and employee satisfaction with over 75% of our team
members having over one year's service.
1: YouGov BrandIndex Quality & Value scores as at 26 February 2026 based
on a nationally representative 52-week moving average
The conversion of lower returning branded restaurants into a more efficient
F&B offering, together with accelerated cost efficiencies of £83m(1),
meant that despite significant inflationary pressures including higher
national living wage, national insurance and food and beverage costs,
operating costs reduced by 3%.
Lower UK revenue and increases in both right of use asset depreciation and
lease liability interest, driven by the impact of rent reviews (accounting for
the majority of these increases) as well as sale and leaseback transactions,
meant that UK segment adjusted profit before tax(†) declined 2% year-on-year
to £499m (FY25: £507m). UK segment adjusted pre-tax margins(†) were flat
year-on-year at 18.8% (FY25: 18.8%), while UK ROCE(†) was 12.7% (FY25:
12.9%). During the year, £103m (FY25: £43m) of impairment and £28m (FY25:
£1m) of accelerated depreciation was recognised in the UK, arising from site
extensions and conversions in relation to the AGP. In addition, £15m of
impairments (FY25: £10m) were recognised on other assets.
1: Total cost efficiencies delivered in FY26, after the removal of
non-recurring structural savings
Premier Inn Germany - delivering profitability
Reaching profitability in Germany for the first time represents an important
milestone for the Group, with segment adjusted profit before tax(†) of £2m
(FY25: £11m loss), reflecting strong momentum and the continued progress we
are making in this large and exciting market. Despite softer market demand in
the second quarter, reflecting a lower events profile than the prior year, the
continued growth of our estate, and the increasing maturity of our hotels and
brand, as well as our commercial initiatives, meant we delivered 12% growth in
total accommodation sales and RevPAR growth of 6%, with both occupancy and ARR
ahead of last year.
Drawing on our growing pool of guest and trading data, we continue to refine
and enhance our commercial strategy, which is contributing to our positive
RevPAR momentum:
· Improved trading strategies - We continued to focus on optimising
performance on key event nights that account for over 20% of total
accommodation sales and are a significant driver of profitability. By refining
our pricing strategy, we delivered an improved performance versus the market
on these nights, with our more established cohort achieving RevPAR ahead of
the market.
· Driving ancillary revenue - By offering guests several optional
extras during the booking journey, we are enhancing the overall guest
experience, while also driving incremental revenue. The rollout of options
including additional Premier Plus rooms, early check‑in and late check‑out
is driving RevPAR growth. On‑site add‑ons, such as parking and in‑hotel
self‑service options, drive other non-room revenue, which increased 19%
year-on-year.
· Broadening distribution - Providing room availability through the
right mix of channels ensures we can continue to attract high volumes of
domestic and international demand. OTAs remain an important and
value‑accretive channel in the German market, driving incremental demand and
strengthening brand awareness. Guests who book directly with us get the best
experience and central to this is the continued development of the Premier Inn
app, supporting a more seamless digitally-led booking journey including the
ability to check-in online, accelerating customer acquisition and building
loyalty.
· Increasing brand awareness - Our strategy is designed to firmly
establish our brand presence and elevate our market positioning within the
German hospitality sector. Having become a business of real scale, we continue
to focus on raising our profile with an average brand awareness in FY26 of
19%(1). Whilst this remains behind our competitors, the quality of our product
and resulting high guest scores mean Premier Inn has delivered the strongest
year‑on‑year increase in brand awareness among competitors reaching 21%(2)
at the end of February 2026.
1: Germany YouGov Brand Awareness as at 26 February 2026 based on a nationally
representative 52-week moving average
2: Germany YouGov Brand Awareness as at 26 February 2026 based on a nationally
representative monthly average
· Enhancing our property strategy - We continue to optimise our
property conversion and development strategy, strengthening partnerships with
key stakeholders to drive further cost efficiencies. This focus has enabled us
to both minimise disruption and reduce timelines as well as improve the
financial performance of sites that are being converted.
In FY26, we opened 633 new rooms and grew our pipeline. As at 26 February
2026, our open and committed pipeline stood at 19,182 rooms (FY25: 18,230
rooms) with c.20% of our committed pipeline being freehold sites. During the
year, £17m of impairment (FY25: £23m) was recognised in Germany at a small
number of sites.
As a result of these initiatives and with the increasing maturity of our
estate and brand, RevPAR grew by 4% in local currency which was significantly
ahead of the M&E market(1). This strong performance was supported by our
cohort of 17 more established hotels(2), that is continuing to mature, as
evidenced by its 6% RevPAR growth in local currency. This cohort of sites
delivered aggregate site-level profit(3) of £20m (FY25: £16m), providing a
useful indicator of the future profit potential of our estate as a whole.
1: Local currency based on STR data, standard basis, 28 February 2025 to 26
February 2026, Germany M&E market excluding Premier Inn
2: Cohort of 17 more established German hotels that were open and trading
under the Premier Inn brand for 12 consecutive months as at 4 March 2022
3: In aggregate, adjusted profit before tax(†) excluding non-site related
administration and overhead costs
Capital allocation - Investing for the long-term to drive higher returns
Our strong balance sheet means we have been able to strike the right balance
between investing in high returning, long-term growth opportunities and
rewarding shareholders through dividends and earnings-enhancing share
buy-backs.
Our capital allocation framework has not changed and is primarily focused on
driving high returns on capital. The core elements of our framework are as
follows:
· maintain our investment grade status by operating below our leverage
threshold;
· continue to fund our ongoing capital expenditure requirements and
invest through the cycle;
· complete selective freehold acquisitions and M&A opportunities
that meet our returns thresholds;
· recycle capital from lower returning assets into higher returning
investments, when suitable opportunities arise;
· grow dividends in line with earnings; and
· return excess capital to shareholders, dependent on the outlook and
market conditions.
After total capital investment of £697m (FY25: £500m) and £419m of share
buy-backs and dividends (FY25: £442m), our ratio of lease-adjusted net
debt(1) to adjusted EBITDAR was 3.3x (FY25: 3.0x) which is below our internal
threshold of 3.5x.
The Board is recommending a final dividend of 60.6p per share (FY25: 60.6p),
making a total of 97.0p for the year (FY25: 97.0p).
1: This measure aligns to the Fitch methodology, with the leverage threshold
set at 3.5x lease-adjusted net debt : adjusted EBITDAR for BBB-
and 3.0x for BBB, both of which are within investment grade
Business strategy
Our ambition is to become the world's best budget hotel brand, delivering a
fantastic experience for our guests, rewarding employment for our teams and
long-term, sustainable returns for our shareholders whilst also driving
positive change through our Force for Good sustainability programme. To
achieve our objective, we are executing the following three pillars of our
business strategy:
· continuing to grow and innovate in the UK;
· focus on our strengths to grow in Germany; and
· enhancing our capabilities to support long-term growth.
Each pillar is embedded within our New Five-Year Plan.
New Five-Year Plan
Since announcing our previous Five-Year Plan in October 2024, the Group has
faced two key challenges. First, unexpected changes to the prevailing fiscal
and trading environment, including higher than expected cost inflation and
significant increases in UK business rates, have impacted the financial
benefits of the Group's previous Five-Year Plan. Second, the Group's market
value has remained at a significant discount to the inherent value of our
business.
Our New Five-Year Plan reflects the output from the Board's comprehensive
business review with clear steps to drive a significant increase in both
margins and returns that will fund substantial cash returns for shareholders.
The planned steps to achieve this include:
· maximising UK returns by reallocating capital spend and by addressing
lower returning F&B operations;
· accelerating the delivery of free cash flow and higher financial
returns in Germany;
· funding future room growth through recycling of the Group's freehold
property; and
· reducing the proportion of freehold assets held across the Group
whilst remaining investment grade.
Further details regarding the Group's New Five-Year Plan can be found in a
separate RNS announcement issued today and published on our investor website:
www.whitbread.co.uk/investors (http://www.whitbread.co.uk/investors) .
Force for Good
Our sustainability programme Force for Good is fundamental to the long-term
growth and resilience of Whitbread. It comprises three elements: opportunity,
responsibility and community, and has targets embedded across all areas of our
business.
Opportunity
We seek to create employment opportunities for all, with no barriers to entry
and no limits to ambition. Opportunity at Whitbread anchors to our talent
development and training, opportunities for disadvantaged youth, diversity and
inclusion ('D&I'), and wellbeing.
We train and develop our people through a variety of initiatives, taking them
through the core skills needed to deliver service for our guests, through to
career progression programmes into management. More than half of our
management positions in operations last year were filled by internal
candidates, reflecting the success of our internal development pathways. We
have over 1,000 apprentices in learning and we are ranked 8th in the Top 100
Apprenticeship Employers. Social mobility remains important to us and we have
supported care-experienced young people into employment through our
partnership with Barnardo's Children's Charity, as well as continuing our
Thrive programme with the Derwent and Hereward Colleges which has supported
students with learning difficulties into permanent employment with us.
We progressed our female leadership representation, improving to 40%, and saw
recognition for our D&I efforts during FY26 with our short-listing at both
the British LGBTQIA+ and 2025 Ethnicity Awards for, respectively, Employee
Network of the year and leading company network. We were also accredited as a
UK Top Employer for the 16th consecutive year.
The wellbeing of our teams is critical and we built on the excellent
foundations laid in prior years with a regular programme of communications
around key themes, such as the menopause and financial wellbeing, delivering
specific webinars on key topics and achieved Henpicked's Menopause Friendly
Employer Accreditation as recognition of our work in this area.
Responsibility
Our responsibility pillar is centred around decarbonisation of our operations,
water stewardship, waste management and responsible sourcing.
Our SBTi-validated target to reduce operational emissions by 2040 is
underpinned by the replacement of legacy gas boilers with air-source heat
pumps and other solutions as we gradually shift towards electricity as the
main source of power. Having opened our first low-carbon(1) hotel in 2023, we
electrified a further c.800 rooms across our UK estate (FY25: 759), bringing
the total to c.2,300 low-carbon rooms, more than any other hotel operator in
the UK market. The transition from gas boilers to heat pumps is broadly
cost-neutral from an operating cost perspective, with returns improving over
time as electricity becomes more competitive than gas.
Our Scope 1&2 emissions intensity has reduced by 63% from an FY17 baseline
(FY25: 62%), and 4% year-on-year, keeping us broadly on track to achieve our
2030 target of an 84% reduction.
We are also on track to reduce our water consumption by 20% by 2030 from an
FY20 baseline, having achieved a 18% reduction per sleeper in FY26 (FY25: 14%)
in the UK & Ireland ('UK&I'). The results of our low-flow showerhead
rollout, now at 66% of our sites (FY25: 40%), has exceeded our expectations,
helping us to lower both water and gas usage. The project is also estimated to
reduce annual operating costs by approximately £4m once fully deployed.
Since 2024, our conversion‑led strategy has helped us deliver high‑quality
budget rooms faster and with a lower environmental footprint. In FY26, we
opened four low-carbon hotels in the UK, half of them in existing buildings.
Two newly built sites achieved an EPC rating of A and BREEAM certification:
one was rated Excellent and the other Very Good.
Managing food waste is a key priority for our UK&I operations. In FY26, we
reached a 40% reduction from an FY18 baseline (FY25: 31%), remaining on track
to achieve a 50% reduction by 2030. In addition to selling surplus breakfast
items at an increasing number of our hotels, enhanced analytics from our new
waste management provider are delivering improved site-level insight and
operational performance. We also donated c.40,000 meals to 641 charities via
FareShare.
With our shift to wholesalers for the majority of food and consumable
purchases in the UK&I, we continue to source critical commodities
responsibly, with 100% of beef farm assured, 100% of wild caught fish MSC
certified, and 100% of our shell and liquid eggs sourced from cage-free farms,
accredited by British Lion and Bord Bia (Origin Ireland Q-Mark). Additionally,
all coffee served in the UK&I is certified by either Fairtrade or
Rainforest Alliance, while 100% of palm oil in non-branded food products being
RSPO-certified.
During the reporting year, we maintained our CDP Carbon and Water rating at B,
and our MSCI ESG rating at AA, while improving our ISS ESG rating from B‑ to
B.
We are actively monitoring all regulatory developments and are leveraging our
experience with TCFD, SASB and transition planning disclosures thereby
ensuring we are well positioned to meet all our current and future
obligations.
1: 'Low-carbon' hotels are powered by electricity backed by Renewable Energy
Guarantees of Origin and no gas or liquefied petroleum gas is used for water
and space heating and cooking
Community
As the UK nutrition and public health agenda continues to evolve, shaped by
high rates of obesity, dietary health inequalities and cost of living
pressures, we are updating our internal non‑HFSS (high in fat, salt and
sugar) targets following completion of core menu reviews. In FY26 we delivered
reductions of 4% in calories and 12% in salt from a 2017 baseline, and 24% in
sugar from a 2015 baseline, compared with reductions of 3%, 21% and 25%
respectively in FY25.
Since 2012, our teams and guests have raised almost £29m, including £3m in
FY26 (FY25: £2m), in partnership with Great Ormond Street Hospital Children's
Charity. This includes £8m towards the Premier Inn Clinical Building (opened
in 2018) and £10m for the Sight & Sound Centre (opened in 2021). We have
now secured more than half of our £20m commitment for the "Build it. Beat
it." appeal, which will fund the development of a new Children's Cancer
Centre. The investment will support the creation of three new inpatient wards
and a dedicated parents' lounge, enhancing care and family experience during
treatment.
In Germany, our teams and guests have raised nearly €2m for Children for a
Better World to address child poverty, while in Ireland we continue to support
the Children's Health Foundation.
Business Review
Premier Inn UK(1)
£m FY26 FY25 vs FY25
Statutory Revenue 2,659 2,691 (1)%
Other income (excl rental income) 2 1 67%
Operating costs before depreciation, amortisation & rent (1,642) (1,696) 3%
Adjusted EBITDAR(†) 1,019 997 2%
Net turnover rent and rental income 1 1 (33)%
Depreciation: Right-of-use asset (165) (153) (8)%
Depreciation and amortisation: Other (201) (193) (4)%
Adjusted operating profit(†) 653 652 0%
Interest: Lease liability (154) (145) (6)%
Segment adjusted profit before tax(†) 499 507 (2)%
ROCE(†) 12.7% 12.9% (20)bps
Segment adjusted PBT margins(†) 18.8% 18.8% (7)bps
Premier Inn UK(1) key performance indicators
FY26 FY25 vs FY25
Number of hotels 846 852 (1)%
Number of rooms 86,582 85,984 1%
Committed pipeline (new rooms)(2,3) 7,906 7,210 10%
Committed pipeline (AGP extension rooms)(3,4) 1,141 1,012 13%
Occupancy 79.1% 81.0% (190)bps
Average room rate(†) £81.95 £79.52 3%
Revenue per available room(†) £64.81 £64.42 1%
Sales growth:
Accommodation 1%
Food & beverage(5) (8)%
Premier Inn Other 21%
Total (1)%
Like-for-like(†) sales growth:
Accommodation 0%
Food & beverage(5) (1)%
Premier Inn Other 21%
Total 0%
1: Includes one site in each of: Guernsey and the Isle of Man, two sites in
Jersey and six sites in Ireland
2: UK and Ireland committed pipeline excluding extension rooms from the
Accelerating Growth Plan
3: FY25: 18 rooms reclassified from committed pipeline (AGP extension rooms)
to committed pipeline (new rooms)
4: Planning approval received for the Accelerating Growth Plan extension rooms
with Board approval to progress
5: Food & beverage revenue includes £6m of other restaurant revenues
(FY25: £7m)
Premier Inn UK accommodation sales increased 1%, reflecting a strong recovery
from the second quarter and outperformed the wider M&E market(1). Premier
Inn other sales increased by 21% driven by growth in ancillary revenues from
optional guest add-ons including high-speed Wi-Fi and car parking. Total UK
F&B revenues fell by 8%, as we continue the transition of a number of our
lower returning branded restaurants into a more efficient, integrated F&B
offering. Although F&B performance was slightly better than expected, due
to the timing of branded restaurant disposals, total UK statutory revenue was
down 1%.
Reflecting the strength of our brand, guest proposition and commercial
initiatives, we were +0.3pp ahead of the market on total accommodation sales
growth and +1.1pp ahead on RevPAR growth, maintaining a healthy RevPAR premium
of £5.88.
UK performance vs M&E market
H1 H2
FY26 FY26 FY26
PI accommodation sales growth performance (vs FY25)(1) +1.0pp (0.6)pp +0.3pp
PI occupancy growth performance (vs FY25)(1) (1.3)pp (1.5)pp (1.4)pp
PI ARR growth performance (vs FY25)(1) +2.9pp +2.8pp +2.9pp
PI RevPAR growth performance (vs FY25)(1) +1.4pp +0.8pp +1.1pp
PI RevPAR premium (absolute)(1) £6.39 £5.34 £5.88
PI market share(2) 8.3% 8.0% 8.2%
PI market share losses (vs FY25)(2) (0.1)pp (0.1)pp (0.1)pp
1: STR data, standard basis, Premier Inn accommodation revenue, occupancy, ARR
and RevPAR 28 February 2025 to 26 February 2026, UK M&E market excluding
Premier Inn
2: STR data, revenue share of total UK market, 28 February 2025 to 26 February
2026
Despite significant inflationary pressures, operating costs reduced by 3% to
£1,642m (FY25: £1,696m) reflecting the exit and conversion of lower
returning branded restaurants into a more efficient F&B offering, together
with accelerated cost efficiencies. As a result, adjusted EBITDAR(†) was up
2% at £1,019m (FY25: £997m).
Right-of-use asset depreciation in the period increased by 8% to £165m (FY25:
£153m) and lease liability interest increased by 6% to £154m (FY25: £145m)
driven by the impact of rent reviews, which accounted for the majority of this
increase, as well as sale and leaseback transactions completed during the
period. Our continued focus of investing in our core estate, alongside estate
growth, meant other depreciation and amortisation charges increased by 4% to
£201m (FY25: £193m).
As a result, UK segment adjusted profit before tax(†) declined 2% to £499m
(FY25: £507m). UK segment adjusted pre-tax margins(†) were flat
year-on-year at 18.8% (FY25: 18.8%), while UK ROCE(†) was 12.7% (FY25:
12.9%).
We opened 1,190 new rooms, including extension rooms as part of the AGP. We
closed 592 rooms, including both lower returning rooms, as well as those
impacted by the AGP, as we seek to optimise the portfolio to drive higher
returns. As at 26 February 2026, we had 846 hotels open and trading with a
total of 86,582 rooms, with a further 7,906 new rooms committed(1), of which
the majority are freehold, plus an additional 1,141 committed AGP extension
rooms(2).
1: UK and Ireland committed pipeline excluding extension rooms from the
Accelerating Growth Plan
2: Planning approval received for the Accelerating Growth Plan extension rooms
with Board approval to progress
Premier Inn Germany(1)
FY26 FY25 vs FY25 vs FY25 CC(2)
£m
Statutory revenue 261 231 13% 11%
Operating costs before depreciation, amortisation and rent (177) (165) (7)% (5)%
Adjusted EBITDAR(†) 85 66 28% 26%
Net turnover rent and rental income 0 0 33% 25%
Depreciation: Right-of-use asset (44) (42) (5)% (3)%
Depreciation and amortisation: Other (16) (15) (12)% (9)%
Adjusted operating profit(†) 25 10 >100% >100%
Interest: Lease liability (23) (21) (8)% (5)%
Segment adjusted profit / (loss) before tax(†) 2 (11) >100% >100%
Premier Inn Germany(1) key performance indicators
FY26 FY25 vs FY25 vs FY25 CC(2)
Number of hotels 65 62 5% -
Number of rooms 11,598 10,965 6% -
Committed pipeline (rooms) 7,584 7,265 4% -
Occupancy 69.0% 67.8% 120bps -
Average room rate(†) £78.53 £75.08 5% 2%
Revenue per available room(†) £54.19 £50.90 6% 4%
Sales growth:
Accommodation 12% 9%
Food & beverage 22% 19%
Other 19% 16%
Total 13% 11%
Like-for-like(†) sales growth:
Accommodation 7% 5%
Food & beverage 14% 12%
Other 14% 11%
Total 8% 6%
1: Includes one site in Austria
2: On a constant currency basis, EUR
Total statutory revenue in Germany increased by 11% in local currency,
reflecting: the growth in our estate; the increasing maturity of our hotels;
enhancements to our trading strategies; broader distribution across channels
such as OTAs; and further progress in building our brand awareness. Total
estate RevPAR increased by 4% to €63 and RevPAR for our cohort of 17 more
established hotels(4) increased by 6% to €71, both of which outperformed the
wider M&E market(3).
Germany performance vs M&E market
H1 H2 vs
FY26 FY26 FY26 FY25
Germany M&E RevPAR performance(3) €58 €55 €56 (2)%
PI more established hotels RevPAR performance(4) €69 €73 €71 6%
PI total hotels RevPAR performance(4) €62 €64 €63 4%
3: STR data, standard methodology basis, 28 February 2025 to 26 February 2026,
M&E excluding Premier Inn
4: Premier Inn more established hotels: open and trading under the Premier Inn
brand for 12 consecutive months as at 4 March 2022: 17 hotels and Premier Inn
total: 63 hotels as at 26 February 2026
Operating costs in the period increased by 7% to £177m (FY25: £165m)
reflecting the continued growth of our estate and cost inflation. As a budget
hotel operator, we maintain a strong focus on cost control and margin growth,
alongside delivering a consistently high-quality guest experience. We have
continued to refine our operating model, evolving our use of technology and
streamlining our management structures to ensure we remain efficient and
agile. Both right-of-use asset depreciation and lease liability costs
increased slightly to £44m (FY25: £42m) and £23m (FY25: £21m)
respectively, consistent with the size of our leasehold estate. Other
depreciation and amortisation charges increased slightly to £16m (FY25:
£15m).
As at 26 February 2026, we had 65 open hotels and 11,598 open rooms and a
further 7,584 rooms in our committed pipeline. Since the period end, we have
opened a further 6 hotels and 1,225 rooms from our committed pipeline.
Our focus on cost efficiencies, the progressive maturity of our estate and our
ongoing commercial initiatives continue to raise our brand awareness and drive
customer volumes. These factors contributed to the achievement of profit
before tax(†) of £2m (FY25: £11m loss).
Central and other costs
£m FY26 FY25 Vs FY25
Operating costs before depreciation, amortisation and rent (34) (37) 9%
Share of profit from joint ventures 5 5 0%
Adjusted operating loss(†) (29) (32) 10%
Net finance income 11 20 (44)%
Adjusted loss before tax(†) (18) (12) (48)%
Central operating costs decreased to £34m (FY25: £37m) reflecting efficiency
savings. Net finance income (excluding lease liability interest) reduced to
£11m (FY25: £20m) reflecting lower interest receivable on cash balances
following the repayment of the £450m bond in October 2025, completion of the
£250m share buy-back and the impact of lower UK interest rates.
Financial review
Financial highlights
£m FY26 FY25 Vs FY25
Statutory revenue 2,920 2,922 0%
Other income (excl rental income) 2 1 90%
Adjusted operating costs(1) (1,853) (1,898) 2%
Share of profit from joint ventures 5 5 0%
Adjusted EBITDAR(†) 1,074 1,030 4%
Net turnover rent and rental income 1 2 (20)%
Depreciation: Right-of-use asset (209) (194) (7)%
Depreciation and amortisation: Other (218) (208) (5)%
Adjusted operating profit(†) 649 630 3%
Net finance income (excl. lease liability interest) 11 20 (44)%
Interest: Lease liability (177) (167) (6)%
Adjusted profit before tax(†) 483 483 0%
Adjusting items (185) (116) (60)%
Statutory profit before tax 298 368 (19)%
Tax expense (86) (114) 25%
Statutory profit after tax 213 254 (16)%
1: Adjusted operating costs before depreciation, amortisation and rent
Statutory revenue
Statutory revenue of £2,920m (FY25: £2,922m) was slightly lower than the
prior year, reflecting a 1% increase in UK accommodation sales and positive
momentum in Germany, offset by the reduction in F&B revenues as a result
of the AGP.
Adjusted EBITDAR
Adjusted operating costs reduced by 2% in the period to £1,853m (FY25:
£1,898m), driven by the impact of a more efficient F&B offering and our
continued progress on cost efficiencies that helped to mitigate the impact of
increased levels of cost inflation. Adjusted EBITDAR(†) increased by 4% to
£1,074m (FY25: £1,030m).
Adjusted operating profit
Right-of-use asset depreciation increased by 7% to £209m (FY25: £194m)
reflecting the impact of rent reviews, which accounted for the majority of
this increase, as well as sale and leaseback transactions completed during the
year. Our estate growth, in combination with our continued focus of investing
in our core estate, meant that other depreciation and amortisation charges
increased by 5% to £218m (FY25: £208m). Despite these increases, adjusted
operating profit(†) increased by 3% to £649m (FY25: £630m).
Net finance costs
Net finance income (excluding lease liability interest) reduced in the year to
£11m (FY25: £20m), reflecting lower interest receivable on cash balances
following the repayment of the £450m bond in October 2025, completion of the
£250m share buy-back and the impact of lower UK interest rates. Interest on
lease liabilities increased by 6% driven by the impact of rent reviews, which
accounted for the majority of this increase, as well as sale and leaseback
transactions completed during the year.
Adjusted profit before tax
Taking the above movements together and despite significant inflationary
pressures, adjusted profit before tax(†) for the year was flat at £483m
(FY25: £483m).
Adjusting items
£m FY26 FY25
Legal claim settlements and insurance proceeds 3 1
Net impairment charges(1) (32) (33)
Accelerating Growth Plan-related net impairment charges and write-offs (130) (44)
Net gain on disposals of property 6 40
Property and other provisions (14) (4)
Strategic IT programme costs (8) (25)
Strategic F&B programme costs (4) (20)
Strategic supply chain programme costs (3) (24)
Employment tax settlement - 2
Other restructuring costs (2) (9)
Adjusting items before tax (185) (116)
1: Net impairment charges - property plant and equipment, right-of-use assets
and assets held for sale
Total adjusting items before tax were a charge of £185m in the period,
compared to a £116m charge in FY25.
During the year, insurance settlements of £3m were received in relation to
damaged inventory.
Impairments of £130m (FY25: £44m) were recognised in relation to the AGP and
£32m of impairments (FY25: £33m) were recognised on non-AGP assets. Within
the £130m of impairments in relation to the AGP, the Group has recognised
£28m (FY25: £1m) of accelerated depreciation arising from site extensions
and conversions in relation to the AGP to transform and exit a number of the
Group's branded restaurants.
The Group recorded gains of £6m (FY25: £40m) from property disposals,
including sale and leasebacks. A provision of £1m related to historic tax
positions was released, which was more than offset by a new property-related
provision of £15m.
The Group has incurred significant business change costs in relation to the
implementation of the Group's new hotel management system, HR & payroll
system, F&B system and our strategic network programme to upgrade the IT
networks across our estate. Cash costs incurred on the programmes and
presented within adjusting items in the year were £8m (FY25: £25m), with
cumulative cash costs to date being £74m (FY25: £66m).
The Group has incurred legal, advisory and project management costs regarding
the announced changes to facilitate the AGP. Cash costs incurred relating to
the AGP and presented within adjusting items in the year were £4m (FY25:
£20m), with cumulative cash costs to date being £30m.
As part of the Group's strategic supply chain programme, the Group has
incurred costs of £3m (FY25: £24m) in relation to associated IT and project
management costs. The move to a new supplier allows the Group to make use of a
different supply model and it is expected the commercial and strategic benefit
will be seen over the long-term.
During the year, the Group restructured its UK Contact Centre, resulting in a
charge of £2m.
Taxation
The tax charge of £123m on the profit before adjusting items (FY25: £134m)
represents an effective tax rate on the profit before adjusting items of 25.5%
(FY25: 27.8%). This is higher than the UK corporate tax rate of 25.0%,
primarily due to the impact of overseas tax losses for which no deferred tax
has been recognised. The statutory tax charge for the period of £86m (FY25:
£114m) represents an effective tax rate of 28.6% (FY25: 31.0%). This is
higher than the effective tax rate on the profit before adjusting items of
25.5%, primarily due to the impact of impairment of Germany property and the
impact of changes to indexation allowances available on UK property.
Statutory profit after tax
Reflecting all of the movements above, statutory profit after tax for the year
was £213m, compared to a profit of £254m in FY25.
Earnings per share
FY26 FY25 vs FY25
Adjusted basic profit / earnings per share(†) 208.5p 194.6p 7%
Statutory basic profit / earnings per share 123.3p 141.5p (13)%
Adjusted basic profit per share(†) of 208.5p and statutory basic profit per
share of 123.3p reflect the adjusted and statutory profits reported in the
period and are based on a weighted average number of shares of 173m (FY25:
179m). The reduction in the weighted average number of shares reflects shares
purchased and cancelled as part of the Group's previously announced share
buy-back programmes.
Dividend
The Board has recommended a final dividend per share of 60.6 pence (FY25: 60.6
pence), taking the total dividend per share for the year to 97.0p (FY25:
97.0p). The final dividend will be paid on 3 July 2026 to all shareholders on
the register at the close of business on 22 May 2026. Shareholders will be
offered the option to participate in a dividend re-investment plan. The
Group's dividend policy is to grow the dividend broadly in line with earnings
across the cycle. Full details are set out in note 8 to the accompanying
financial statements.
Cashflow
£m FY26 FY25
Adjusted EBITDAR(†) 1,074 1,030
Change in working capital (10) 5
Net turnover rent and rental income 1 2
Lease liability interest and lease repayments (353) (313)
Adjusted operating cashflow(†) 713 723
Interest (excl. lease liability interest) (15) 8
Corporate taxes (100) (50)
Pension (6) (18)
Capital expenditure: non-expansionary (176) (247)
Capital expenditure: expansionary(1) (500) (241)
Pre-paid property acquisition cost (22) (12)
Proceeds from disposal of property, plant and equipment 31 81
Proceeds from sale and leaseback of property 282 56
Other (2) (40)
Cashflow before shareholder returns / receipts and debt repayments 205 260
Dividend (169) (178)
Share buy-back (250) (264)
Purchase of own shares for ESOT (11) 0
Payment of facility fees and costs of long-term borrowings (1) (2)
Net cashflow (226) (185)
Opening net debt(†) (483) (298)
Closing net debt(†) (709) (483)
1: FY25 includes £2m payment of contingent consideration
Our vertically integrated model and continued focus on tight cost control
meant that we were able to deliver cost efficiencies of £83m(1) which,
together with the benefit from converting lower returning branded restaurants
into a more efficient F&B offering, meant that operating costs reduced by
2% in the year, driving a 4% increase in adjusted EBITDAR(†) to £1,074m
(FY25: £1,030m).
Lease liability interest and lease repayments increased by £40m to £353m
driven by the impact of rent reviews, which accounted for the majority of this
increase, as well as the sale and leaseback transactions completed during the
year. Together with a working capital outflow of £(10)m (FY25: £5m), this
meant that adjusted operating cashflow(†) increased to £713m (FY25:
£723m).
1: Total cost efficiencies delivered in FY26, after the removal of
non-recurring structural savings
The corporation tax net outflow in the year was £100m (FY25: £50m). This
comprises payments of £98m in the UK, £1m in Ireland and £1m in Germany.
The UK payments of £98m (FY25: £49m) are significantly higher than in the
prior year due to the full utilisation of carry forward tax losses in FY25.
Non-expansionary capital expenditure in the year of £176m reflects hotel
refurbishments and spend incurred for the Group's systems-related IT projects.
The biggest driver of the increase in expansionary capital expenditure of
£500m was related to the spend on the AGP, as well as the continued
development of our committed pipelines in both the UK and Germany.
By continuing to optimise our estate and take advantage of value-enhancing
opportunities, we generated proceeds from property-related disposals of £313m
including £282m from sale and leaseback transactions together with other
property disposals, including those related to the AGP, of £31m.
The significant operating cashflow generated in the period, together with
property related disposals, helped to fund our continued programme of
investment, resulting in a cash inflow before shareholder returns of £205m
(FY25: £260m).
As announced with the Group's preliminary results on 1 May 2025, the Board
recommended a final dividend of
60.6 pence per share reflecting the strength of the Group's FY25 performance
and strong balance sheet. The resulting payment of £107m was paid on 4 July
2025. At the interim results in October 2025, the Board declared an interim
dividend of 36.4 pence per share, resulting in a £62m dividend payment. On 30
April 2025, the Board approved a £250m share buy-back which was completed in
the year.
As a result, net debt(†) at the end of the period was £709m (FY25: £483m).
Debt funding facilities & liquidity
£m Facility Utilised Maturity
Revolving Credit Facility (740) - 2029
Green Bond (300) (300) 2027
Green Bond (250) (250) 2031
Bond (400) (400) 2032
(1,690) (950)
Cash and cash equivalents 234
Total facilities utilised, net of cash(1) (716)
Net debt(†) (709)
Net debt and lease liabilities(†) 5,232
The Group's objective is to manage to investment grade metrics, maintaining a
lease-adjusted
leverage(†) ratio of less than 3.5x over the medium term(2). In February
2026, we received confirmation from Fitch Ratings that we have maintained our
investment grade status with a rating of BBB. The Group's lease-adjusted net
debt was £3,554m (FY25: £3,082m) and the lease-adjusted leverage(†) ratio
was 3.3x (FY25: 3.0x). As at 26 February 2026, £35m of the £775m Revolving
Credit Facility is carved-out as an ancillary guarantee facility for the
Group's use in Germany. At 26 February 2026, guarantees issued using this
facility totalled €35m (FY25: €30m).
1: Excludes unamortised fees associated with the debt instrument
2: This measure aligns to the Fitch methodology, with the leverage threshold
set at 3.5x lease-adjusted net debt: adjusted EBITDAR for BBB- and 3.0x for
BBB, both of which are within investment grade
Capital investment
£m FY26 FY25
UK maintenance and product improvement 171 240
New / extended UK hotels 415 179
Germany(1) 112 82
Total 697 500
1: FY26 includes £22m related to pre-paid property acquisition costs, for
conistency FY25 has been restated to include £12m of pre-paid property
acquisition costs. FY25 includes £2m payment of contingent consideration
UK maintenance expenditure was lower than last year at £171m, reflecting a
return to more normalised levels following the completion of our bed
replacement programme. UK expansionary expenditure increased significantly in
the year to £415m (FY25: £179m), reflecting our continued investment in the
AGP, as well as increased construction spend for new hotels including our Old
Bailey site and progression at our Strand site. In Germany and the Middle
East, capital expenditure was £112m, £30m higher than the prior year, in
line with our estate growth. Overall, total capital expenditure for the period
was £697m (FY25: £500m).
The balance sheet value of property, plant and equipment increased to £4.9bn
(FY25: £4.7bn) as the increased expenditure in growing and maintaining our
estate was offset by transfers to assets held for sale, depreciation and
impairment charges.
Property-backed balance sheet
Freehold / leasehold mix Open estate Total estate(1)
Premier Inn UK 53%:47% 54%:46%
Premier Inn Germany 24%:76% 23%:77%
Group 49%:51% 49%:51%
1: Open plus committed pipeline
The current open UK estate is 53% freehold and 47% leasehold. However, as the
existing committed pipeline is brought onstream, the mix will become slightly
more weighted towards freehold. The current estate in Germany is 24% freehold
and 76% leasehold reflecting the skew towards leasehold properties in city
centre locations. However, with the opening of our committed pipeline, this
will shift to 23% freehold and 77% leasehold.
New site openings in Germany and continued expansion in the UK resulted in
right-of-use assets increasing to £3.8bn (FY25: £3.7bn) and lease
liabilities increasing to £4.5bn (FY25: £4.2bn).
Return on Capital
Returns FY26 FY25
Group ROCE(†) 11.1% 11.3%
UK ROCE(†) 12.7% 12.9%
Group ROCE(†) in the period was 11.1% reflecting several factors including
UK accommodation sales growth and positive momentum in Germany, offset by
lower UK total revenue as a result of the impact of the AGP.
Events after the balance sheet date
The results include the announcement of the proposed extension of the
Accelerating Growth Plan to optimise UK F&B to include all of the Group's
remaining branded restaurants.
Pension
The Group's defined benefit pension scheme, the Whitbread Group Pension Fund
(the 'Pension Fund'), had an IAS19 Employee Benefits surplus of £132m at the
end of the period (FY25: £135m). The slight change in surplus was primarily
driven by: asset performance being lower than the discount rate; changes to
the demographic assumptions which increased the assessed value of the pension
obligations; and higher than expected inflation. This was partially offset by:
an increase in corporate bond yields resulting in an increase in the discount
rate used to value liabilities; and a reduction in expectations for future
inflation.
There are currently no deficit reduction contributions being paid to the
Pension Fund. The Trustee holds security over £531m of Whitbread's freehold
property which will remain at this level until certain steps are taken in
relation to the Scottish Partnership arrangements. Following that, the
security held by the Trustee will be revised to the lower of: £500m; and 120%
of the buy-out deficit.
Going concern
The directors have concluded that it is appropriate for the consolidated
financial statements to be prepared on the going concern basis. Full details
are set out in note 1 of the attached financial statements.
Risks and uncertainties
The Directors have reviewed Whitbread's principal risks and uncertainties for
FY26. Overall, the Group's risk profile remains broadly consistent with the
position reported at the half year, although external volatility and the scale
of internal transformation continue to place pressure on several key risk
areas. The operating environment remains challenging, particularly in the UK
where persistent inflation, subdued consumer sentiment and structurally higher
cost pressures are more pronounced. Germany is comparatively stable but
continues to lag long‑term expectations.
The global backdrop remains uncertain. Geopolitical tensions, including the
recent escalation in hostilities in the Middle East, have increased the risk
of prolonged disruption to global supply chains and energy prices. Such
conflict also creates potential upward pressure on oil prices over the longer
term, which could feed into sustained inflation in goods, utilities and
transport‑related inputs that materially affect the hospitality sector. In
addition, the Group continues to closely monitor the safety and wellbeing of
its teams and guests in regions directly affected by ongoing conflict,
including the Middle East, recognising the evolving and uncertain nature of
the situation.
At the same time, the business is navigating a significant period of change as
major strategic, organisational and commercial programmes continue whilst
recently delivered projects are embedded into the Group's day-to-day
operations. The Board remains mindful of the demands this places on senior
management capacity and the need to maintain appropriate balance between
short‑term performance priorities and long‑term strategic value creation.
Ensuring delivery momentum while preserving disciplined decision‑making,
strong governance and operational resilience remains a central focus.
Across this context, the Group's highest‑rated risks continue to relate to
the external economic outlook, the ongoing disruption in the branded
restaurant estate, and the strategic change agenda.
Following review, the principal risks are summarised below:
· Uncertain economic outlook - Macroeconomic volatility, fiscal
pressures, sector‑specific inflation and subdued consumer demand in the UK
and Germany may adversely impact trading performance, cost forecasts and the
Group's ability to fund growth, with longer‑term inflationary risks linked
to geopolitical instability and energy price shocks.
· Cybersecurity - The rapidly evolving cyber threat landscape,
including increased use of AI‑enabled attacks, presents a material risk to
the confidentiality, integrity and availability of the Group's systems and
data, with potential impacts on operations, regulatory compliance and brand
trust.
· Prolonged focus on F&B propositions - Continued uncertainty
in achieving a stable and sustainable F&B operating model may negatively
affect Premier Inn's brand perception, customer demand and RevPAR premium
versus the wider M&E market.
· Strategic business change and interdependencies - The scale, pace
and complexity of ongoing strategic initiatives, including estate optimisation
and digital transformation, increase the risk of execution challenges,
operational disruption and pressure on organisational capacity.
· Brand strength and customer demand - Failure to maintain brand
relevance, value perception and customer loyalty in a highly competitive
market could result in reduced demand, loss of market share and pressure on
pricing.
· Changing distribution landscape and AI‑led search - Structural
shifts in customer booking behaviour, including increased importance of online
travel agents and emerging AI‑driven search and discovery channels, may
reduce direct bookings and impact distribution costs.
· Property finance execution - Challenging real estate market
conditions, constrained investor appetite and extended transaction timelines
increase the risk of delays or less favourable terms in refinancing or asset
disposals, affecting leverage and financial flexibility.
· Germany profitable growth - Slower‑than‑expected market
recovery and the ongoing embedding of operating model improvements in Germany
may impact the pace and profitability of growth.
· Health & Safety - The risk of death, serious injury, major
food safety failure or a significant security‑related incident remains a
critical priority given the potential impact on brand, operations, customer
trust and the Group's reputation.
· Third‑party arrangements and supply chain rigour - Dependence
on critical suppliers exposes the Group to risks of service disruption,
operational failure, information security weaknesses and reputational damage,
heightened by ongoing geopolitical uncertainty affecting global supply chains.
· Talent attraction and retention - Structural labour shortages in
certain roles, together with ongoing organisational change, may adversely
affect the Group's ability to attract and retain key talent, manage costs and
sustain operational capability.
· Environmental, Social and Governance ('ESG') - Increasing
regulatory requirements, decarbonisation investment, climate‑related events
and sustainability‑related compliance obligations present financial,
operational and reputational risks to the Group
The Board continues to monitor a broad range of emerging risks and their
potential impact on the Group's strategic objectives. These include how
changes in global political and economic alignments are reshaping the balance
of power and influencing market stability; the pace of technological and
digital advancement, including AI, and the Group's ability to respond
effectively; and the operational and cultural challenges associated with
embedding long‑term efficiency initiatives into the Group's day-to-day
operations. As both a recognised and emerging risk, we are paying particular
attention to the potential for prolonged geopolitical conflict and possible
impact to the safety and wellbeing of team members and guests, travel
patterns, energy and oil markets and inflationary pressures, recognising the
uncertain duration and evolving nature of current events. The Board remains
mindful of the risk of low probability, high-impact events that could
significantly disrupt the Group's ability to trade or support operations,
including the potential for future pandemics or other systemic shocks that may
adversely affect travel demand and the wider hospitality sector. These
considerations are embedded within the Group's risk management framework and
will continue to be assessed as conditions develop.
The detail of our principal risks can be found on pages 65 to 71 of the Annual
Report which is available on the Group's website www.whitbread.co.uk
(http://www.whitbread.co.uk) .
American Depositary Receipts
Whitbread has established a sponsored Level 1 American Depositary Receipt
('ADR') programme for which JP Morgan perform the role of depositary bank. The
Level 1 ADR programme trades on the U.S. over the counter ('OTC') markets
under the symbol WTBDY (it is not listed on a U.S. stock exchange).
Notes
(†)The Group uses certain APMs to help evaluate the Group's financial
performance, position and cashflows, and believes that such measures provide
an enhanced understanding of the Group's results and related trends and allow
for comparisons of the financial performance of the Group's businesses either
from one period to another or with other similar businesses. However, APMs are
not defined by IFRS and therefore may not be directly comparable with
similarly titled measures reported by other companies. APMs should be
considered in addition to, and are not intended to be a substitute for, or
superior to, IFRS measures. APMs used in this announcement include
like-for-like revenue, revenue per available room ('RevPAR'), average room
rate ('ARR'), direct bookings/distribution, adjusted operating profit /
(loss), return on capital employed ('ROCE'), adjusted pre-tax profit margins,
adjusted profit / (loss) before tax, adjusted basic profit / earnings per
share, net cash / (debt), net cash / (debt) and lease liabilities,
lease-adjusted net debt / (cash), lease-adjusted net debt to adjusted EBITDAR
for leverage, adjusted operating cashflow, adjusted EBITDA (post-IFRS 16),
adjusted EBITDA (pre-IFRS 16) and adjusted EBITDAR. Further information can be
found in the glossary and reconciliation of APMs at the end of this document.
Cautionary Statement
Nothing contained in this announcement is intended to constitute an offer,
invitation or inducement to engage in an investment activity for the purposes
of the prohibition on financial promotions under the Financial Services and
Markets Act 2000. In making this announcement available, Whitbread PLC makes
no recommendation to purchase, sell or otherwise deal in shares in Whitbread
PLC or any other securities or investments whatsoever and you should neither
rely nor act upon, directly or indirectly, any of the information contained in
this announcement in respect of such investment activity.
No representations, express or implied, are given in, or in respect of, this
announcement. To the extent permitted by law, Whitbread PLC, and its
subsidiaries (together, the "Group") and its and their shareholders,
affiliates, representatives, partners, directors, officers, employees,
advisors or agents shall not be liable for any direct, indirect or
consequential loss or loss of profit arising from the use of this
announcement, its content or otherwise arising in connection therewith.
Certain statements included or incorporated by reference within this
announcement may constitute "forward looking statements" in respect of the
Group's operations, performance, prospects and/or financial condition. Forward
looking statements are sometimes, but not always, identified by their use of a
date in the future or such words as "momentum", "transform", "plan",
"continue", "pathway", "roadmap", "transition", "anticipate" "intend",
"expect", "target", "believe", "estimate", "may", "will", "potential ",
"outlook", "future" or "accelerate" (including in their negative form) or
similar terms and expressions. Such statements are made in good faith, based
on Whitbread PLC's current expectations and beliefs concerning future events
and are subject to a number of known and unknown risks and uncertainties that
could cause actual events or results to differ materially from any expected
future events or results referred to in these forward looking statements.
These risks include, but are not limited to: macroeconomic uncertainty;
changes in law and regulations affecting our business; global supply chain
disruptions; cyber and data security issues; fluctuating customer demand; any
future health crisis and related responses, including government imposed
travel or health-related restrictions; and other risks inherent to the
industry in which the Group operates. Such statements are also based on
numerous assumptions regarding the Group's present and future strategy and the
environment in which it operates, which may not be accurate. Whitbread PLC
undertakes no obligation to update any forward looking statements contained in
this announcement or any other forward looking statements it may make.
Nothing in this announcement should be construed as a profit forecast. Past
performance cannot be relied upon as a guide to future performance and persons
needing advice should consult an independent financial advisor.
Consolidated income statement
52 weeks to 26 February 2026 52 weeks to 27 February 2025
Adjusted Adjusting items Total Adjusted Adjusting items Total
(Note 4) (Note 4)
Continuing operations Notes £m £m £m £m £m £m
Revenue 2 2,920.2 - 2,920.2 2,921.9 - 2,921.9
Other income 6.6 2.6 9.2 6.5 0.9 7.4
Operating costs 3 (2,282.6) (187.3) (2,469.9) (2,303.5) (116.5) (2,420.0)
Operating profit before joint ventures 644.2 (184.7) 459.5 624.9 (115.6) 509.3
Share of profit from joint ventures 4.7 - 4.7 4.7 - 4.7
Operating profit 2 648.9 (184.7) 464.2 629.6 (115.6) 514.0
Finance costs 5 (200.3) - (200.3) (188.5) - (188.5)
Finance income 5 34.5 - 34.5 42.3 - 42.3
Profit before tax 2 483.1 (184.7) 298.4 483.4 (115.6) 367.8
Tax expense 6 (123.2) 37.7 (85.5) (134.4) 20.3 (114.1)
Profit for the year 359.9 (147.0) 212.9 349.0 (95.3) 253.7
52 weeks to 26 February 2026 52 weeks to 27 February 2025
Earnings per share (Note 7) pence pence pence pence pence pence
Basic 208.5 (85.2) 123.3 194.6 (53.1) 141.5
Diluted 207.0 (84.6) 122.4 193.4 (52.8) 140.6
Consolidated statement of comprehensive income
Notes 52 weeks to 26 February 2026 52 weeks to 27 February 2025
£m £m
Profit for the year 212.9 253.7
Items that will not be reclassified to the income statement:
Remeasurement loss on defined benefit pension scheme 15 (11.3) (51.7)
Current tax on defined benefit pension scheme 6 (1.7) (1.8)
Deferred tax on defined benefit pension scheme 6 4.3 14.4
(8.7) (39.1)
Items that may be reclassified subsequently to the income statement:
Net gain/(loss) on cash flow hedges:
Net fair value movement 0.7 5.7
Reclassified and reported in the consolidated income statement 1.6 8.8
Deferred tax on cash flow hedges 6 (0.6) (3.6)
Net gain on hedge of a net investment (22.0) 16.1
Current tax on hedge of a net investment 6 3.3 (2.1)
(Credit)/costs in relation to hedging (1.4) 1.1
(18.4) 26.0
Exchange differences on translation of foreign operations 29.2 (20.9)
Current tax on exchange differences on translation of foreign operations 6 (3.5) 2.4
25.7 (18.5)
Other comprehensive loss for the year, net of tax (1.4) (31.6)
Total comprehensive income for the year, net of tax 211.5 222.1
Consolidated statement of changes in equity
Share Share Capital Retained Currency Other Total
capital premium redemption earnings translation reserves £m
£m £m reserve £m reserve £m
£m £m
At 29 February 2024 151.8 1,031.8 63.5 4,645.3 25.9 (2,398.9) 3,519.4
Profit for the year - - - 253.7 - - 253.7
Other comprehensive (loss)/income - - - (39.1) (3.9) 11.4 (31.6)
Total comprehensive income/(loss) - - - 214.6 (3.9) 11.4 222.1
Ordinary shares issued 0.1 7.0 - - - - 7.1
Loss on ESOT shares issued - - - (8.1) - 8.1 -
Accrued share-based payments - - - 16.8 - - 16.8
Tax on share-based payments - - - (0.8) - - (0.8)
Equity dividends paid (Note 8) - - - (178.1) - - (178.1)
Share buy-back, commitment and cancellation (Note 13) (6.8) - 6.8 (252.0) - - (252.0)
Conversion of preference share capital 0.1 (0.1) - - - - -
At 27 February 2025 145.2 1,038.7 70.3 4,437.7 22.0 (2,379.4) 3,334.5
Profit for the year - - - 212.9 - - 212.9
Other comprehensive (loss)/income - - - (8.7) 13.6 (6.3) (1.4)
Total comprehensive income/(loss) - - - 204.2 13.6 (6.3) 211.5
Ordinary shares issued 0.1 5.1 - - - - 5.2
Loss on ESOT shares issued - - - (13.8) - 13.8 -
Accrued share-based payments - - - 16.7 - - 16.7
Tax on share-based payments - - - (0.1) - - (0.1)
Equity dividends paid (Note 8) - - - (168.8) - - (168.8)
Share buy-back, commitment and cancellation (Note 13) (6.7) - 6.7 (251.3) - - (251.3)
Purchase of ESOT shares - - - - - (11.3) (11.3)
At 26 February 2026 138.6 1,043.8 77.0 4,224.6 35.6 (2,383.2) 3,136.4
Consolidated balance sheet
26 February 2026 27 February 2025
Notes £m £m
Non-current assets
Intangible assets 161.0 174.3
Right-of-use assets 3,838.1 3,662.7
Property, plant and equipment 9 4,884.4 4,677.4
Investment in joint ventures 54.0 54.4
Deferred tax assets 3.0 -
Derivative financial instruments 0.1 -
Defined benefit pension surplus 15 131.9 134.6
9,072.5 8,703.4
Current assets
Inventories 11.0 17.1
Derivative financial instruments - 19.9
Current tax assets 6.2 -
Trade and other receivables 136.7 127.1
Cash and cash equivalents 233.7 909.0
387.6 1,073.1
Assets classified as held for sale 11 108.5 128.2
Total assets 9,568.6 9,904.7
Current liabilities
Borrowings - 450.0
Lease liabilities 175.6 167.0
Provisions 22.4 27.6
Derivative financial instruments - 1.4
Current tax liabilities 1.7 12.2
Trade and other payables 689.7 660.8
889.4 1,319.0
Non-current liabilities
Borrowings 943.0 942.4
Lease liabilities 4,347.5 4,066.8
Provisions 6.1 7.2
Derivative financial instruments 9.5 -
Deferred tax liabilities 236.7 234.8
5,542.8 5,251.2
Total liabilities 6,432.2 6,570.2
Net assets 3,136.4 3,334.5
Equity
Share capital 13 138.6 145.2
Share premium 1,043.8 1,038.7
Capital redemption reserve 77.0 70.3
Retained earnings 4,224.6 4,437.7
Currency translation reserve 35.6 22.0
Other reserves (2,383.2) (2,379.4)
Total equity 3,136.4 3,334.5
Consolidated cash flow statement
Notes 52 weeks to 52 weeks to
26 February 2026 27 February 2025
£m £m
Cash generated from operations 14 1,072.6 1,004.5
Payments against provisions (21.9) (15.5)
Defined benefit pension scheme payments 15 (6.3) (17.9)
Interest paid on lease liabilities (177.0) (166.7)
Interest paid on other items (43.6) (26.0)
Interest received 28.7 33.5
Corporation taxes paid (99.7) (50.2)
Net cash flows from operating activities 752.8 761.7
Cash flows used in investing activities
Cash paid in advance for purchase of property (21.8) (12.2)
Purchase of property, plant and equipment 2 (655.7) (466.4)
Proceeds from disposal of property, plant and equipment 30.7 136.5
Proceeds from sale and leaseback of property 282.2 -
Investment in intangible assets 2 (19.7) (19.6)
Payment of deferred and contingent consideration - (1.9)
Distributions received from joint ventures 1.4 1.2
Net cash flows used in investing activities (382.9) (362.4)
Cash flows used in financing activities
Proceeds from issue of ordinary shares 5.2 7.1
Proceeds from issuance of debt - 398.3
Payment of facility fees and costs of long term borrowings - (3.1)
Net lease incentives received / (paid) (3.1) 2.7
Payment of principal of lease liabilities (172.9) (148.7)
Drawdown of RCF short-term borrowings 50.0 -
Repayments of RCF short-term borrowings (50.0) -
Repayments of bonds (450.0) -
Net settlement of cross‑currency swaps (3.8) -
Net settlement of FX swaps 8.8 -
Dividends paid (168.8) (178.1)
Purchase of own shares, including transaction costs for buy-back programme (250.4) (264.3)
Purchase of own shares for ESOT (11.3) -
Net cash flows used in financing activities (1,046.3) (186.1)
Net (decrease) / increase in cash and cash equivalents 12 (676.4) 213.2
Opening cash and cash equivalents 12 909.0 696.7
Foreign exchange differences 12 1.1 (0.9)
Closing cash and cash equivalents 233.7 909.0
Notes to the consolidated financial statements
1. General information, basis of accounting and preparation
General information
The consolidated financial statements and preliminary announcement of
Whitbread PLC for the year ended 26 February 2026 were authorised for issue in
accordance with a resolution of the Board of Directors on 29 April 2026.
The financial year represents the 52 weeks to 26 February 2026 (prior
financial year: 52 weeks to 27 February 2025).
The financial information included in this preliminary statement of results
does not constitute statutory accounts within the meaning of Section 435 of
the Companies Act 2006 (the "Act"). The financial information for the year
ended 26 February 2026 has been extracted from the statutory accounts on which
an unqualified audit opinion has been issued. Statutory accounts for the year
ended 26 February 2026 will be delivered to the Registrar of Companies in
advance of the Group's Annual General Meeting.
The statutory accounts for the year ended 27 February 2025, have been
delivered to the Registrar of Companies, and the Auditors of the Group made a
report thereon under Chapter 3 of part 16 of the Act. That report was
unqualified and did not contain a statement under sections 498 (2) or (3) of
the Act.
The consolidated financial statements of Whitbread PLC and all its
subsidiaries have been prepared in accordance with international accounting
standards in conformity with the requirements of the Companies Act 2006 and
UK-adopted international accounting standards.
Accounting policies
The accounting policies adopted in the preparation of these consolidated
financial statements are consistent with those followed in the preparation of
the consolidated financial statements for the year ended 27 February 2025,
except for the adoption of the new standards and interpretations that are
applicable for the year ended 26 February 2026.
Basis of consolidation
The consolidated financial statements incorporate the accounts of Whitbread
PLC and all its subsidiaries, together with the Group's share of the net
assets and results of joint ventures incorporated using the equity method of
accounting. These are adjusted, where appropriate, to conform to Group
accounting policies.
A subsidiary is an entity controlled by the Group. Control is achieved when
the Company:
· has power over the investee;
· is exposed, or has rights, to variable returns from its involvement with
the investee; and
· has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and
circumstances indicate that there are changes to one or more of the three
elements of control listed above.
Apart from the acquisition of Whitbread Group PLC by Whitbread PLC in 2000/01,
which was accounted for using merger accounting, acquisitions by the Group are
accounted for under the acquisition method and any goodwill arising is
capitalised as an intangible asset. The results of subsidiaries acquired or
disposed of during the year are included in the consolidated financial
statements from, or up to, the date that control passes respectively. All
intra-Group transactions, balances, income and expenses are eliminated on
consolidation. Unrealised losses are also eliminated, unless the transaction
provides evidence of an impairment of the asset transferred.
Going concern
The Group's and Company's (the "Group") business activities, together with the
factors likely to affect future development, performance and position, are set
out in the Business review. The Group's financial position, cash flows,
liquidity and borrowing facilities are described in the Financial Review. The
principal risks and uncertainties faced by the Group are detailed in the Risks
and uncertainties section.
The Directors have considered these areas alongside the principal risks and
the potential impact on the Group's ability to continue as a Going Concern.
Details of the Group's available and drawn facilities are provided in the
Financial Review. At the year end, the Group held cash and cash equivalents of
£233.7m and had access to committed borrowing facilities of £775.0m, of
which £nil had been drawn.
The Group's forecasts demonstrate that it is expected to maintain significant
financial resources and operate within its covenant for at least 12 months
from the date of approval of these financial statements.
In the event that additional funding was required, the Directors have a
reasonable expectation that such funding could be secured through existing
financing channels. The Directors have also considered the potential impact of
climate -related factors on cash flows and liquidity over the period of the
assessment and do not expect these to materially affect the Group's ability to
continue to operate.
After due consideration of all relevant factors, the Directors are satisfied
that the Group has adequate resources to continue in operational existence for
the foreseeable future, being a period of at least 12 months from the date of
signing these financial statements. Accordingly, the financial statements have
been prepared on a Going Concern basis.
Adjusting items and use of alternative performance measures
We use a range of measures to monitor the financial performance of the Group.
These measures include both statutory measures in accordance with IFRS and
alternative performance measures ('APMs') which are consistent with the way
the business performance is measured internally by the Board and Executive
Committee. A glossary of APMs and reconciliations to statutory measures is
given at the end of this report.
The term adjusted profit is not defined under IFRS and may not be directly
comparable with adjusted profit measures used by other companies. It is not
intended to be a substitute for, or superior to, statutory measures of profit.
Adjusted measures of profitability are non-IFRS because they exclude amounts
that are included in, or include amounts that are excluded from, the most
directly comparable measure calculated and presented in accordance with IFRS.
The Group makes certain adjustments to the statutory profit measures in order
to derive many of its APMs. The Group's policy is to exclude items that are
considered to be significant in nature and quantum, not in the normal course
of business or are consistent with items that were treated as adjusting in
prior periods or that span multiple financial periods. Treatment as an
adjusting item provides users of the accounts with additional useful
information to assess the year-on-year trading performance of the Group.
On this basis, the following are examples of items that may be classified as
adjusting items:
· net charges associated with the strategic review of the Group's hotel and
restaurant property estate;
· significant restructuring costs and other associated costs arising from
strategy changes that are not considered by the Group to be part of the normal
operating costs of the business;
· significant pension charges arising as a result of changes to UK defined
benefit scheme practices;
· net impairment and related charges for sites which are/were
underperforming that are considered to be significant in nature and/or value
to the trading performance of the business;
· costs in relation to non-trading legacy sites which are deemed to be
significant and not reflective of the Group's ongoing trading results;
· transformation and change costs associated with the implementation of the
Group's IT strategic programme;
· profit or loss on the sale of a business or investment, and the
associated cost impact on the continuing business from the sale of the
business or investment;
· acquisition costs incurred as part of a business combination or other
strategic asset acquisitions;
· amortisation of intangible assets recognised as part of a business
combination or other transaction outside of the ordinary course of business;
and
· tax settlements in respect of prior years, including the related interest
and the impact of changes in the statutory tax rate, the inclusion of which
would distort year-on-year comparability, as well as the tax impact of the
adjusting items identified above.
The Group income statement is presented in a columnar format to enable users
of the accounts to see the Group's performance before adjusting items, the
adjusting items, and the statutory total on a line-by-line basis. The
directors believe that the adjusted profit and earnings per share measures
provide additional useful information to shareholders on the performance of
the business. These measures are consistent with how business performance is
measured internally by the Board and Executive Committee.
Changes in accounting policies
The Group has adopted the following standards and amendments for the first
time for the annual reporting period commencing 1 March 2025, they have been
assessed as not having a material financial impact on adoption:
· Amendments to IAS 21 - Lack of Exchangeability (effective for periods
beginning on or after 1 January 2025). These amendments did not have a
material impact on the Group's financial statements.
Standards issued by the IASB not effective for the current year and not early
adopted by the Group
Amendments to IFRS 9 and IFRS 7 - Classification and measurement of financial
instruments (effective for periods beginning on or after 1 January 2026). The
Group intends to apply the Amendment to IFRS 9 as issued by the IASB in May
2024 for the first time retrospectively in next year's Annual Report and
Accounts, with the impact from this to the 2026 year-end cash at bank and in
hand being a £69.1m increase in relation to committed payment runs where the
derecognition of liabilities will be at the settlement date.
The impact of the following is under assessment: IFRS 18 Presentation and
disclosure in financial statements, which will become effective in the
consolidated Group financial statements for the financial year ending 26
February 2028.
Whilst the following standards and amendments are relevant to the Group, they
have been assessed as not having a material financial impact or additional
disclosure requirements at this time:
· Annual improvements to IFRS - volume 11 (effective for periods beginning
on or after 1 January 2026)
· IFRS 19 Subsidiaries without public accountability: Disclosures
(effective for periods beginning on or after 1 January 2027)
The Group does not intend to early adopt any of these new standards or
amendments.
Critical accounting judgements and key sources of estimation uncertainty
The following are the critical accounting judgements, apart from those
involving estimations (dealt with separately below) that management has made
in the process of applying the Group's accounting policies and which have the
most significant effect on the amounts recognised in the financial statements.
The Group has considered the impact of climate-related risks on its financial
performance and position, and although the impact represents an uncertainty,
it is not considered to be material.
Adjusting items
During the year certain items are identified and separately disclosed as
adjusting items. Judgement is applied as to whether the item meets the
necessary criteria as per the accounting policy disclosed earlier in this
Note. This assessment covers the nature of the item, the cause of occurrence
and the scale of impact of that item on reported performance. Reversals of
previous adjusting items are assessed based on the same criteria. Note 4
provides information on all of the items disclosed as adjusting in the current
year and comparative financial statements.
Assets held for sale
Assets are classified as held for sale only if the asset is available for
immediate sale in their present condition and a sale is highly probable
and expected to be completed within one year from the date of classification.
As a result of the Group's Accelerating Growth Plan ('AGP') the Group is
actively marketing a significant number of sites. Judgement exists on a
site-by-site basis as to whether the sale will complete within one year. In
exercising its judgement management has taken into consideration all
available information including external market expert advice.
Recognition of German Deferred Tax Asset
The Group, through its market entry in Germany, has generated tax losses that
will be available for offset against future taxable profits. These losses have
resulted in a material unrecognised deferred tax asset of £77.3m
(unrecognised tax losses carried forward of £284.7m (€325.5m)) at this
balance sheet date (2024/25: £80.9m). If the Group were to fully recognise
the deferred tax asset in this financial year it would have the effect of
reducing the Group's effective tax rate from 28.6% to 2.7%. The German
reportable segment's results have continued to improve, with this forecast to
continue in future reporting periods. However, the forecasts used to support
whether sufficient positive evidence exists to recognise the deferred tax
asset are instead based on
the German taxable profits profile. Following this assessment, the Group has
judged that at the balance sheet date there remains to be insufficient
convincing other evidence, as required under IAS 12, that it will have
sufficient taxable profits to realise the above deferred tax asset at this
time.
In July 2025, the German legislator substantively enacted a reduction to the
corporate income tax rate by 1 percentage point per annum over a five-year
period, commencing in 2028 and concluding in 2032. This phased reduction will
lower the statutory corporate income tax rate from 15% to 10% by 2032. Trade
taxes have not been amended and as a result the blended deferred tax rate
applied to German losses under IAS 12 has reduced from 31.9% (2024/25) to
27.2% (2025/26). The unrecognised deferred tax asset above has been calculated
accordingly.
Key sources of estimation uncertainty
The following are the key areas of estimation uncertainty that may have a
significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year.
Defined benefit pension
Defined benefit pension plans are accounted for in accordance with actuarial
advice using the projected unit credit method. The Group makes significant
estimates in relation to the discount rates, mortality rates and inflation
rates used to calculate the present value of the defined benefit obligation.
Note 15 describes the assumptions used together with an analysis of the
sensitivity to changes in key assumptions.
Impairment testing - Property, plant and equipment and right-of-use assets
The performance of the Group's impairment review requires management to make a
number of judgements and estimates which are presented together below for ease
of understanding but identified separately:
Estimates within impairment testing:
Inputs used to estimate value in use
The estimate of value in use is most sensitive to the following inputs:
· Forecast period cashflows - the initial five-year period's cashflows are
drawn from the five-year business plan.
· Discount rate - judgement is required in estimating the weighted average
cost of capital ('WACC') of a typical market participant and in assessing the
specific country and currency risks associated with the Group. The rate used
is adjusted for the Group's gearing, including equity, borrowings and lease
liabilities.
· Maturity profile of individual sites - judgement is required to estimate
the time taken for sites to reach maturity and the sites' trading level once
they are mature.
Methodology used to estimate fair value
Fair value is determined using a range of methods, including present value
techniques using assumptions consistent with the value in use calculations and
market multiple techniques using externally available data. For the purpose of
assessing fair value for sites the Group has sought expert valuations based on
insight into local market specific factors.
Judgements within impairment testing:
Strategic impact on composition of CGUs
The Group exercises judgement in assessing the impairment of assets identified
for disposal, particularly when they do not yet meet the criteria for
classification as held for sale under IFRS 5. For such individual assets,
where their value is primarily expected to be realised through sale and cash
flows from continuing use are negligible, the Group applies IAS 36 to impair
them to their fair value less costs of disposal. This approach reflects that
the economic value of these assets is predominantly derived from their
impending sale, even if they form part of a larger cash-generating unit.
Identification of indicators of impairment and reversal
The Group assesses each of its CGUs for indicators of impairment or reversal
at the end of each reporting period and, where there are indicators of
impairment or reversal, management performs an impairment assessment.
Useful economic life review - AGP site extensions and conversions
Where site extensions or conversions are committed as part of Whitbread's
Accelerating Growth Plan, the Group commences accelerated depreciation on
assets that will no longer be used after the site redevelopment. The Group's
key judgement here has been assessing that the trigger point for commitment to
the extension or conversion is from the date that the site has both planning
permission and an approved internal business case to proceed. From this point,
the remaining useful life of affected assets is reassessed with an estimated
end date aligned with when the asset will no longer be used. The resulting
depreciation charge, along with any write-offs of similar assets that have
been disposed of as at the balance sheet date, are treated as adjusting items.
Key estimates and sensitivities for impairment of assets are disclosed in Note
10.
2. Segment information
The Group provides services in relation to accommodation, food and beverage
both in the UK and internationally. Management monitors the segment
performance separately for the purpose of making decisions about allocating
resources and assessing performance. Segment performance is measured based on
segment adjusted profit/(loss), defined below. Included within central and
other in the following tables are the costs of running the public company,
other central overhead costs and share of profit from joint ventures.
The following tables present revenue and profit information regarding business
operating segments for the years ended 26 February 2026 and 27 February 2025.
52 weeks to 26 February 2026 52 weeks to 27 February 2025
Revenue UK & Ireland(1) Germany(2) Central and other Total UK & Ireland(1) Germany(2) Central and other Total
£m £m £m £m £m £m £m £m
Accommodation 2,024.9 220.8 - 2,245.7 2,010.1 197.6 - 2,207.7
Food and beverage 594.8 32.5 - 627.3 646.4 26.7 - 673.1
Other items 39.6 7.6 - 47.2 34.8 6.3 - 41.1
Revenue 2,659.3 260.9 - 2,920.2 2,691.3 230.6 - 2,921.9
52 weeks to 26 February 2026 52 weeks to 27 February 2025
Profit/(loss) UK & Ireland(1) Germany(2) Central and other Total UK & Ireland(1) Germany(2) Central and other Total
£m £m £m £m £m £m £m £m
Adjusted operating profit/(loss) 660.3 18.9 (30.3) 648.9 653.1 9.9 (33.4) 629.6
Segmental royalty fees(3) (7.0) 5.9 1.1 - (1.0) - 1.0 -
Segment adjusted operating profit/(loss) 653.3 24.8 (29.2) 648.9 652.1 9.9 (32.4) 629.6
Net finance (costs)/income (154.3) (22.8) 11.3 (165.8) (145.3) (21.2) 20.3 (146.2)
Segment adjusted profit/(loss) before tax 499.0 2.0 (17.9) 483.1 506.8 (11.3) (12.1) 483.4
Adjusting items before tax (Note 4) (184.7) (115.6)
Profit before tax 298.4 367.8
(1) The UK and Ireland segment includes operations of the Group within Crown
Dependencies. Royalty fees are charged between the geographies within this
segment.
(2) The Germany segment includes operations of the Group within Austria.
(3) Royalty fees are charged from the UK to other geographies, prior to this
financial year inter-segmental royalty fees were waived for the Germany
segment.
52 weeks to 26 February 2026 52 weeks to 27 February 2025
Other segment information UK & Ireland(1) Germany(2) Central and other Total UK & Ireland(1) Germany(2) Central and other Total
£m £m £m £m £m £m £m £m
Capital expenditure:
Property, plant and equipment - cash basis 567.3 88.4 - 655.7 399.6 66.8 - 466.4
Property, plant and equipment - accruals basis 595.9 111.7 - 707.6 402.0 63.3 - 465.3
Intangible assets 18.2 1.5 - 19.7 18.9 0.7 - 19.6
Cash outflows from lease interest and payment of principal of lease 289.5 60.4 - 349.9 262.4 53.0 - 315.4
liabilities
Depreciation - property, plant and equipment 168.4 16.0 - 184.4 162.7 14.6 - 177.3
Depreciation - right-of-use assets 164.9 43.7 - 208.6 152.8 41.5 - 194.3
Amortisation 32.8 0.4 - 33.2 30.1 0.1 - 30.2
Segment assets and liabilities are not disclosed because they are not reported
to, or reviewed by, the Chief Operating Decision Maker.
The Group's revenue, split by country in which the legal entity resides, is as 52 weeks to 52 weeks to
follows:
26 February 2026 27 February 2025
£m £m
United Kingdom 2,611.0 2,649.1
Germany 256.8 226.3
Ireland 35.9 29.6
Other 16.5 16.9
2,920.2 2,921.9
The Group's non-current assets(1), split by country in which the legal entity 52 weeks to 52 weeks to
resides, are as follows:
26 February 2026 27 February 2025
£m £m
United Kingdom 7,224.4 7,063.3
Germany 1,387.3 1,219.4
Ireland 217.6 179.4
Other 108.2 106.7
8,937.5 8,568.8
(1) Non-current assets exclude derivative financial instruments, deferred tax
assets and the surplus on the Group's defined benefit pension scheme.
3. Operating costs
52 weeks to 52 weeks to
26 February 2026 27 February 2025
£m £m
Cost of inventories recognised as an expense 215.1 225.7
Employee benefits expense 801.6 818.7
Amortisation of intangible assets 33.2 30.2
Depreciation - property, plant and equipment (Note 9) 184.4 177.3
Depreciation - right-of-use-assets 208.6 194.3
Utilities 119.4 134.8
Rates 106.7 105.4
Laundry costs 79.6 78.0
Site repairs and maintenance 131.7 131.5
Marketing and commissions 141.4 127.6
Site operating costs 154.1 157.0
Variable lease payment expense 3.5 4.0
Net foreign exchange differences (0.5) 0.5
Other operating charges 103.8 118.5
Adjusting operating costs (Note 4) 187.3 116.5
2,469.9 2,420.0
4. Adjusting items
As set out in the policy in Note 1, we use a range of measures to monitor the
financial performance of the Group. These measures include both statutory
measures in accordance with IFRS and APMs which are consistent with the way
that the business performance is measured internally. We report adjusted
measures because we believe they provide both management and investors with
useful additional information about the financial performance of the Group's
businesses. Adjusted measures of profitability represent the equivalent IFRS
measures adjusted for specific items that we consider hinder the comparison of
the financial performance of the Group's businesses either from one period to
another or with other similar businesses.
52 weeks to 52 weeks to
26 February 2026 27 February 2025
£m £m
Other income:
Legal claim settlements and insurance proceeds(1) 2.6 0.9
Adjusting other income 2.6 0.9
Operating costs:
Net impairment charges - property, plant and equipment, right-of-use assets (32.0) (33.0)
and assets held for sale(2)
Accelerating Growth Plan-related net impairment charges and write-offs(3) (130.5) (43.5)
Net gains on disposals of property(4) 6.4 40.1
Property and other provisions(5) (14.3) (4.4)
Strategic IT programme costs(6) (8.0) (24.8)
Strategic F&B programme costs(7) (4.3) (19.9)
Strategic supply chain programme costs(8) (2.9) (24.1)
Employment tax settlement(9) - 2.0
Other restructuring costs(10) (1.7) (8.9)
Adjusting operating costs before joint ventures (187.3) (116.5)
Adjusting items before tax (184.7) (115.6)
Tax on adjusting items(11) 35.6 20.3
Impact of change in tax rates(12) 2.1 -
Adjusting tax credit 37.7 20.3
( )
(1) During the year, the Group received settlements of £2.6m in relation to
insurance claims for damaged inventory (2024/25: received settlements for
business interruption insurance claims of £0.9m).
(2) The Group has identified indicators of impairment and impairment reversal
relating to assets held by the Group at the year-end date, including those
sites impacted by the Accelerating Growth Plan (see footnote 3 below). For
those sites not impacted by the Accelerating Growth Plan, an impairment review
of relevant assets was undertaken, resulting in adjusting net impairment
charges of £32.0m (2024/25: £33.0m).
Further information is provided in Note 10.
(3) Included in the amounts recorded during the period are impairments arising
from the Group's continued optimisation of its UK F&B strategy, the
Accelerating Growth Plan. The net impairment of £130.5m comprises impairment
charges of £102.9m relating to sites and accelerated depreciation of £27.6m
(2024/25: Impairment of £43.5m including £1.0m relating to accelerated
depreciation).
Further information on impairment is provided in Note 10.
( )
(4) During the year, the Group recognised net gains of £4.8m on sale and
leaseback property disposals (2024/25: £0.1m) and net gains of £1.6m on
other property disposals (2024/25: £40.0m). No gains or losses relating to
these assets were recognised in other comprehensive income.
(5) The Group recorded a £15.2m property-related provision and released
£0.9m of provisions in respect of historic tax positions. During the
comparative year, the group created a provision in relation to damaged
inventory of £4.4m.
(6) The Group has assessed the presentation of costs incurred in relation to
the current and future implementation of its strategic IT programmes. The
programmes in scope are the Group's Hotel Management System, HR & Payroll
System, F&B System and Strategic Network. These represent significant
business change costs for the Group rather than replacements of IT systems
with the system products being Software as a Service (SaaS).
Cash costs incurred on the programmes and presented within adjusting items in
the period were £8.0m, with cumulative cash costs to date being £73.7m
(2024/25: £65.7m).
(7) The Group has incurred legal, advisory and project management costs
regarding the announced changes to facilitate the Accelerating Growth Plan
(AGP) as well as restructuring costs. This programme represents a significant
business change for the Group's strategic focus in relation to F&B.
Cash costs incurred on the programmes and presented within adjusting items in
the period were £4.3m, with cumulative cash costs to date being £30.1m
(2024/25: £25.8m).
(8) As part of the Group's strategic supply chain programme the Group has
incurred costs of £2.9m in relation to associated IT and project management
costs (2024/25: £24.1m relating to supplier contract exit fees). This
decision allows the Group to make use of a different supply model and it is
expected the commercial and strategic benefit will be seen over several years.
(9) During the comparative year, the Group received confirmation that a
previous enquiry from HMRC on historic taxes has been closed. £2.0m has been
released through adjusting items from accruals held in relation to these
enquiries.
(10) During the year, the Group restructured its UK Contact Centre, resulting
in a charge of £1.7m. During the comparative year, restructuring of the UK
and Germany Support Centres and site operations in Germany resulted in a
charge of £8.9m.
(11) The Group recognised tax credits of £35.6m (2024/25: £20.3m) in
relation to its adjusting items in the financial year. This includes a
deferred tax charge of £8.4m (2024/25: nil) in the year arising from changes
in the recoverability of indexation allowances in relation to property.
(12) In July 2025, the German government substantively enacted legislation to
reduce the corporate income tax rate by 1% per annum over a five-year period,
commencing in 2028 and concluding in 2032. The change has resulted in the
remeasurement of certain deferred tax assets and liabilities which are
forecast to be utilised or to crystallise from 2028. As a result, a credit of
£2.1m is recorded in the income statement.
Summary of adjusting item lines that can be forecast:
Expected year Low range High range
of completion £m £m
Accelerating Growth Plan-related net impairment charges and write-off FY29 50.0 70.0
Strategic F&B programme costs FY29 20.0 30.0
Strategic IT programme costs FY27 5.0 10.0
Forecast adjusting items before tax 75.0 110.0
5. Finance (costs)/income
52 weeks to 52 weeks to
26 February 2026 27 February 2025
£m £m
Finance costs
Interest on bank loans and overdrafts (5.0) (4.7)
Interest on other loans (42.7) (24.7)
Interest on lease liabilities (177.0) (166.7)
Interest capitalised 23.0 8.7
Credit/(costs) in relation to hedging 1.4 (1.1)
(200.3) (188.5)
Finance income
Bank interest receivable 26.8 33.5
IAS 19 pension net finance income (Note 15) 7.5 8.3
Other interest receivable 0.2 0.5
34.5 42.3
Total net finance costs (165.8) (146.2)
6. Taxation
52 weeks to 52 weeks to
Consolidated income statement 26 February 2026 27 February 2025
£m £m
Current tax:
Current tax expense 83.9 51.4
Adjustments in respect of previous years (1.2) (1.1)
82.7 50.3
Deferred tax:
Origination and reversal of temporary differences 3.8 63.1
Effect of in-year rate differential/change in tax rates (2.1) -
Adjustments in respect of previous years 1.1 0.7
2.8 63.8
Tax reported in the consolidated income statement 85.5 114.1
Consolidated statement of other comprehensive income 52 weeks to 52 weeks to
26 February 2026 27 February 2025
£m £m
Current tax:
Defined benefit pension scheme 1.7 1.8
Tax on net movement on hedge of a net investment (3.3) 2.1
Tax on exchange differences on translation of foreign operations 3.5 (2.4)
1.9 1.5
Deferred tax:
Cash flow hedges 0.6 3.6
Defined benefit pension scheme (4.3) (14.4)
(3.7) (10.8)
Tax reported in other comprehensive income (1.8) (9.3)
A reconciliation of the tax expense applicable to adjusted profit before tax
and profit before tax at the statutory tax rate, to the actual tax expense at
the Group's effective tax rate, for the years ended 26 February 2026 and 27
February 2025 respectively is set out here. All current year items have been
tax effected at the UK statutory rate of 25.0% (2024/25: 25.0%) with the
exception of the effect of unrecognised losses in overseas companies, which
has been tax effected at the statutory rate in the relevant jurisdictions with
an adjustment to account for the differential tax rates included in the effect
of different tax rates.
2025/26 2025/26 2024/25 2024/25
Tax on adjusted profit Tax on Tax on adjusted profit Tax on
£m profit £m profit
£m £m
Profit before tax as reported in the consolidated income statement 483.1 298.4 483.4 367.8
Tax at current UK tax rate of 25.0% (FY25: 25.0%) 120.8 74.6 120.9 92.0
Effect of different tax rates (3.3) (3.1) (2.7) (4.5)
Unrecognised losses in overseas companies 5.1 10.4 9.3 17.6
Expenditure not allowable 1.2 1.9 3.3 5.4
Adjustments to current tax expense in respect of previous years (1.2) (1.2) (1.0) (1.0)
Adjustments to deferred tax expense in respect of previous years 1.0 1.0 0.7 0.7
Impact of deferred tax being at a different rate from current tax rate - (2.1) - -
Impact of deferred tax related to indexation allowance 0.3 8.7 2.7 2.7
Property disposals and sale and leaseback - (4.0) - -
Other movements (0.7) (0.7) 1.2 1.2
Tax expense reported in the consolidated income statement 123.2 85.5 134.4 114.1
Effective tax rate 25.5% 28.7% 27.8% 31.0%
Pillar Two
The Group is within the scope of the OECD Pillar Two rules. Based on the
Group's current assessment, Pillar Two is not expected to have a material
impact on the Group's tax charge. The Group has applied the mandatory
temporary exception in respect of deferred taxes arising from Pillar Two
income taxes, as required by IAS 12.
Deferred tax
The Group has unrecognised German tax losses of £284.7m (€325.5m) (2024/25:
£253.6m (€307.3m)) which can be carried forward indefinitely and offset
against future taxable profits in the same tax group. The Group carries out an
assessment of the recoverability of these losses at the reporting period and,
to the extent that they exceed tax liabilities within the same tax group, does
not deem it appropriate at this stage to recognise any net German deferred tax
asset. Please refer to the Critical Accounting Judgement within Note 1 for
further information. Recognition of German deferred tax assets in their
entirety would result in an increase in the reported deferred tax asset of
£77.3m (2024/25: £80.9m).
7. Earnings per share
The basic earnings per share (EPS) figures are calculated by dividing the net
profit/(loss) for the year attributable to ordinary shareholders of the parent
by the weighted average number of ordinary shares in issue during the year
after deducting treasury shares and shares held by an independently managed
employee share ownership trust (ESOT).
The diluted earnings per share figures allow for the dilutive effect of the
conversion into ordinary shares of the weighted average number of options
outstanding during the year. Where the average share price for the year is
lower than the option price, the options become anti-dilutive and are excluded
from the calculation.
The number of shares used for the earnings per share calculations are as
follows:
52 weeks to 52 weeks to
26 February 2026 27 February 2025
million million
Basic weighted average number of ordinary shares 172.6 179.3
Effect of dilution - share options 1.3 1.2
Diluted weighted average number of ordinary shares 173.9 180.5
The total number of shares in issue at the reporting period date, as used in
the calculation of the basic weighted average number of ordinary shares, was
180.1m, less 12.5m treasury shares held by Whitbread PLC and 0.6m held by the
ESOT.
The profits used for the earnings per share calculations are as follows:
52 weeks to 52 weeks to
26 February 2026 27 February 2025
£m £m
Profit for the year attributable to parent shareholders 212.9 253.7
Adjusting items before tax (Note 4) 184.7 115.6
Adjusting tax credit (Note 4) (37.7) (20.3)
Adjusted profit for the year attributable to parent shareholders 359.9 349.0
52 weeks to 52 weeks to
26 February 2026 27 February 2025
Pence pence
Basic EPS on profit for the year 123.3 141.5
Adjusting items before tax 107.0 64.4
Adjusting tax credit (21.8) (11.3)
Basic EPS on adjusted profit for the year 208.5 194.6
Diluted EPS on profit for the year 122.4 140.6
Diluted EPS on adjusted profit for the year 207.0 193.4
8. Dividends paid and proposed
52 weeks to 26 February 2026 52 weeks to 27 February 2025
pence per share £m pence per £m
share
Final dividend, proposed and paid, relating to the prior year 60.60 106.5 62.90 114.7
Interim dividend, proposed and paid, for the current year 36.40 62.3 36.40 65.2
Unclaimed dividend written back - - n/a (2.1)
Total equity dividends paid in the year on ordinary shares 168.8 177.8
Dividends on other shares:
B shares - - 11.40 0.2
C shares - - 7.60 0.1
Total dividends paid 168.8 178.1
Proposed for approval at annual general meeting:
Proposed final equity dividend for the current year 60.60 101.3 60.60 106.4
A final dividend of 60.60p per share amounting to a dividend of £101.3m was
recommended by the directors at their meeting on 29 April 2026. A dividend
reinvestment plan (DRIP) alternative will be offered. The proposed final
dividend is subject to approval by shareholders at the Annual General Meeting
and has not been included as a liability in these consolidated financial
statements.
9. Property, plant and equipment
During the reporting period the Group has had additions of £707.6m (FY25:
£465.3m), depreciation charges of £184.4m (FY25: £177.3m), net impairment
charges of £130.3m (FY25: £48.3m), net movements to assets held for sale of
£247.5m (FY25: to held for sale of £167.0m), capitalised interest cost of
£23.0m (FY25: £8.7m), net book value disposed of £nil (FY25: £0.1m) and an
increase of net book value from foreign currency translation of £38.6m (FY25:
reduction of £22.5m).
Included in property, plant and equipment are assets under construction of
£827.6m (2024/25: £612.5m) land and buildings and £126.8m (2024/25:
£69.7m) plant and equipment.
There is a charge in favour of the pension scheme over properties with a
market value of £531.5m (FY25: £531.5m).
Capital expenditure commitments
26 February 2026 27 February 2025
£m £m
Capital expenditure commitments for property, plant and equipment for which no 370.0 271.8
provision has been made
10. Impairment
During this year, net impairment charges of £162.5m (FY25: £76.5m) were
recognised within operating costs.
Accelerating Growth Plan:
Net impairment, write-offs and accelerated depreciation of £130.5m (2024/25:
£43.5m) has been recognised in respect of the Group continuing with and
proposing an extension to the Accelerating Growth Plan (AGP).
UK:
Outside of Accelerating Growth Plan-related impairments, gross impairment
charges in the UK of £15.5m (2024/25: £15.8m) and no gross impairment
reversals in the UK (2024/25: £5.3m) have been recorded across right-of-use
assets and property, plant and equipment.
Germany:
The Group continues to make progress through organic and portfolio
acquisitions in order to access German markets, with FY26 performance
reflecting the increased maturity of open sites. Impairment indicators were
identified at a small number of German sites, following which the Group has
updated relevant cash flow assumptions which has resulted in a net impairment
charge of £16.5m (FY25: £22.5m impairment charge).
The charges/(reversals) were recognised on the following classes of assets:
2025/26 Impairment charge Impairment reversal
Total
£m £m £m
Impairment charges/(reversals) included in operating costs
Property, plant and equipment(1) 132.7 (2.4) 130.3
Accelerating Growth Plan sites 117.6 (2.4)
Rest of estate 15.1 -
Right-of-use assets 21.4 (0.1) 21.3
Accelerating Growth Plan sites 4.5 (0.1)
Rest of estate 16.9 -
Assets held for sale 10.9 - 10.9
Accelerating Growth Plan sites 10.9 -
Total charges/(reversals) for impairment included in operating costs 165.0 (2.5) 162.5
(1)The net impairment charge of £130.3m above includes £27.6m of accelerated
depreciation in relation to the Extensions programme.
2024/25 Impairment charge Impairment reversal
Total
£m £m £m
Impairment charges/(reversals) included in operating costs
Property, plant and equipment 52.8 (3.5) 49.3
Accelerating Growth Plan sites 30.6 (1.5)
Rest of estate 22.2 (2.0)
Right-of-use assets 29.3 (4.0) 25.3
Accelerating Growth Plan sites 13.2 (0.7)
Rest of estate 16.1 (3.3)
Assets held for sale 7.2 (5.3) 1.9
Accelerating Growth Plan sites 7.2 (5.3)
Total charges/(reversals) for impairment included in operating costs 89.3 (12.8) 76.5
All of the impairment assessments take account of expected market conditions
which include future risks including climate change and related legislation.
Methodology in relation to the Group's Accelerating Growth Plan
The Group has announced a proposed extension to the Accelerating Growth Plan.
When considered together, the existing and proposed extension to AGP have had
the following impact on the Group's impairment review:
Extensions programme:
As part of the Group's Extensions programme, certain branded restaurant units
are being repurposed, with smaller areas dedicated to integrated food and
beverage services and where appropriate the remaining space converted to
additional hotel rooms. The composition of the CGU remains unchanged.
During the year, planning applications were submitted for a number of sites,
with approvals received for some locations. The useful economic lives of
relevant buildings and FF&E have been reassessed based on the status of
planning approvals and commencement of works. Where all relevant internal and
external approvals have been obtained, the carrying value of the related
assets is written down accordingly.
During the year, £27.6m was written off. The Group expects to incur further
charges of between £50.0m and £70.0m over the coming financial years.
Disposal sites:
Disposal sites that were actively marketed at the year end, with a valid
expectation of disposal within 12 months of the balance sheet date, have been
classified as assets held for sale. As the economic benefits of these sites
are expected to be realised principally through sale rather than continuing
use, they have been measured at the lower of carrying value and fair value
less costs of disposal. The remaining net book value of £39.2m (2024/25:
£68.0m) is presented within assets held for sale.
The Group has announced its proposed extension to AGP, and there is an
expectation that the committed plan to dispose of a further group of sites to
third parties will take place. These disposal sites do not meet the criteria
for classification as assets held for sale, but are measured at the lower of
carrying value and net realisable value as the individual assets' VIU is
estimated to be close to its now measurable fair value less costs of disposal.
In these cases, net realisable value is represented by FVLCD. With the
announcement of the proposed extension to the Accelerating Growth Plan the
Group has recorded an impairment of £75.4m.
11. Assets classified as held for sale
The following table present the major classes of assets and liabilities
classified as held for sale:
26 February 2026 27 February 2025
£m £m
Property, plant and equipment 109.2 128.8
Right-of-use assets 1.4 1.1
Lease liabilities (2.1) (1.7)
Assets classified as held for sale 108.5 128.2
At the year end, there were 86 sites with a combined net book value of
£108.5m (2024/25: 107 with net book value of £128.2m) classified as assets
held for sale (AHFS). There are no gains or losses recognised in other
comprehensive income with respect to these assets. The value and number of
assets held for sale are both heightened by the Group's continued commitment
to the Accelerating Growth Plan.
Sites are classified as held for sale only if they are available for immediate
sale in their present condition and a sale is highly probable and expected to
be completed within one year from the date of classification. Where there has
been a delay in disposing of a site, the Group remains committed to its plan
to sell the asset. If a site no longer meets this criteria at future reporting
dates it is transferred back to property, plant and equipment.
12. Movements in cash and net debt
27 February 2025 Share buy-back commitments including transaction costs Cash flow Net new lease liabilities Foreign exchange Impact of fair value hedge Cost of borrowings and amortisation of premiums and discounts 26 February 2026
£m £m £m £m £m £m £m £m
Cash and cash equivalents 909.0 - (676.4) - 1.1 - - 233.7
Liabilities from financing activities:
Borrowings (1,392.4) - 450.0 - - 1.1 (1.7) (943.0)
Lease liabilities (4,233.8) - 172.9 (411.2) (51.0) - - (4,523.1)
Committed share buy-back - (250.4) 250.4 - - - - -
Total liabilities from financing activities (5,626.2) (250.4) 873.3 (411.2) (51.0) 1.1 (1.7) (5,466.1)
Less: lease liabilities 4,233.8 - (172.9) 411.2 51.0 - - 4,523.1
Less: committed share buy-back - 250.4 (250.4) - - - - -
Net debt (483.4) - (226.4) - 1.1 1.1 (1.7) (709.3)
13. Share capital
Ordinary share capital
Allotted, called up and fully paid ordinary shares of 76.80p each (FY25: million £m
76.80p each)
At 27 February 2025 188.8 145.2
Issued on exercise of employee share options 0.1 0.1
Cancellations following share buy-back (8.8) (6.7)
At 26 February 2026 180.1 138.6
Share buy-back, commitment and cancellation
The Company purchased and cancelled 8.8m (2024/25: 8.9m) shares with a nominal
value of £6.7m (2024/25: £6.8m) under the share buy-back programmes running
through this financial year. Consideration of £250.4m (2024/25: £264.3m),
including associated fees and stamp duty of £1.2m (2024/25: £2.0m), was paid
during the year with fees of £0.9m accrued for (2024/25: £nil).
Share Forfeiture
The Group has implemented a share forfeiture programme following the
completion of a tracing and notification exercise to any shareholders who have
not had contact with the Company over the past 12 years, in accordance with
the provisions set out in the Company's articles of association. Under the
share forfeiture programme the shares and dividends associated with shares of
untraced members have been forfeited.
Other than shares issued in the normal course of business as part of the
share-based payments schemes, there have been no transactions involving
ordinary shares or potential ordinary shares since the reporting date and
before the completion of these consolidated financial statements.
14. Analysis of cash flows given in the cash flow statement
52 weeks to 52 weeks to
26 February 2026 27 February
2025
£m £m
Profit for the year 212.9 253.7
Adjustments for:
Tax expense 85.5 114.1
Net finance costs 165.8 146.2
Share of profit from joint ventures (4.7) (4.7)
Depreciation and amortisation 426.2 401.8
Share-based payments 16.7 16.8
Net impairment charge (Note 10) 162.5 76.5
Net gain on disposals of property (6.4) (40.1)
Other non-cash items 23.6 35.6
Cash generated from operations before working capital changes 1,082.1 999.9
Decrease in inventories 6.2 4.1
(Increase)/Decrease in trade and other receivables (1.1) 4.1
Decrease in trade and other payables (14.6) (3.6)
Cash generated from operations 1,072.6 1,004.5
15. Retirement benefits
Defined benefit scheme
During the year, the defined benefit pension scheme has moved from a surplus
of £134.6m to a surplus of £131.9m. The main movements in the surplus are as
follows:
£m
Pension surplus at 27 February 2025 134.6
Administrative expenses (5.2)
Net interest on pension liability and assets (Note 5) 7.5
Losses recognised in other comprehensive income (11.3)
Contributions from employer 6.1
Benefits paid directly by the Company in relation to an unfunded pension 0.2
scheme
Pension surplus at 26 February 2026 131.9
The principal assumptions used by the independent qualified actuaries in
updating the most recent valuation carried out as at 31 March 2025 of the UK
scheme to 26 February 2026 for IAS 19 Employee Benefits purposes (2024/25: 31
March 2023 of the UK scheme to 27 February 2025) were:
26 February 2026 27 February 2025
Pre-April 2006 rate of increase in pensions in payment 2.90% 3.00%
Post-April 2006 rate of increase in pensions in payment 2.00% 2.10%
Pension increases in deferment 2.90% 3.00%
Discount rate 5.50% 5.50%
Inflation assumption 3.00% 3.20%
Life expectancies
Retiring at the balance sheet date at age 65 - male 19.9 years 19.7 years
Retiring at the balance sheet date at age 65 - female 23.0 years 22.4 years
Retiring at the balance sheet date in 20 years at age 65 - male 20.8 years 20.7 years
Retiring at the balance sheet date in 20 years at age 65 - female 24.2 years 23.5 years
The life expectancies shown above are based on standard mortality tables which
allow for future mortality improvements. The mortality improvements assumption
has been updated to use the CMI 2024 model with appropriate parameterisation
(2024/25: CMI 2023).
The assumptions in relation to discount rate, mortality and inflation have a
significant effect on the measurement of scheme liabilities. The following
table shows the sensitivity of the valuation to changes in these assumptions:
(Increase)/decrease in net Decrease/(increase) in gross defined benefit liability
defined benefit surplus
26 February 2026 27 February 2025 26 February 2026 27 February 2025
£m £m £m £m
Discount rate
1.00% increase to discount rate (125.0) (131.0) 158.0 165.0
1.00% decrease to discount rate 152.0 159.0 (189.0) (199.0)
Inflation
0.25% increase to inflation rate 26.0 23.0 (32.0) (29.0)
0.25% decrease to inflation rate (25.0) (23.0) 31.0 29.0
Life expectancy
Additional one-year increase to life expectancy 36.0 38.0 (56.0) (60.0)
The above sensitivity analyses are based on a change in an assumption whilst
holding all other assumptions constant. In practice, this is unlikely to occur
and changes in some of the assumptions may be correlated. Where the discount
rate is changed this will have an impact on the valuation of scheme assets in
the opposing direction.
16. Contingent liabilities
The Group previously stated that it was involved in legal proceedings in
relation to a third-party intellectual property claim, this matter was
successfully defended during the current period and the Group no longer deems
this to be a contingent liability.
The Group has updated it's accounting policy in relation to property-related
remediation, clarifying its accounting treatment in this area, as well as
having created related provisions in the financial year.
17. Events after the balance sheet date
Accelerating Growth
Plan
The results include the announcement of the proposed extension of the
Accelerating Growth Plan to optimise UK F&B to include all of the Group's
remaining branded restaurants.
Glossary
Basic earnings per share (Basic EPS)
Profit attributable to the parent shareholders divided by the weighted average
number of ordinary shares in issue during the year after deducting treasury
shares and shares held by an independently managed share ownership trust
('ESOT').
Cash rent
The total of interest paid on lease liabilities, payment of principal of lease
liabilities and variable lease payments, adjusted to reflect one year's rent.
Committed pipeline
Sites where the Group has a legal interest in a property (that may be subject
to planning/other conditions) with the intention of opening a hotel in the
future. Freehold sites where we currently have a legal interest (either
through agreement to purchase subject to conditions, or where we have acquired
the land/building), however management have agreed to sell the site, will be
removed from the committed pipeline at the point the decision has been made to
sell.
Direct bookings / distribution
Based on stayed bookings in the financial year made direct to the Premier Inn
website, Premier Inn app, Premier Inn customer contact centre or hotel front
desks.
Food and beverage (F&B) sales
Food and beverage revenue from all Whitbread owned restaurants and integrated
hotel restaurants.
GOSH charity
Great Ormond Street Hospital Children's Charity.
IFRS
International Financial Reporting Standards.
Lease debt
In line with methodology used by our credit rating agency, lease-adjusted net
debt includes lease debt. Lease debt is calculated at eight times cash rent.
Occupancy
Number of hotel bedrooms occupied by guests expressed as a percentage of the
number of bedrooms available in the year.
Operating profit
Profit before net finance costs and tax.
OTA's
Online travel agents.
Rent expense
Rental costs recognised in the income statement prior to the adoption of IFRS
16.
Team retention
The number of permanent new starters that we retain for the first 90
days/three months.
Trading site
A joint hotel and restaurant or a standalone hotel.
Segment adjusted operating profit/(loss)
The adjusted operating profit/(loss) excludes the impact of segmental royalty
fees charged from the UK to other segments to aid comparability of segment
performance.
WINcard
Whitbread In Numbers - balanced scorecard to measure progress against key
performance targets.
YourSay
Whitbread's annual employee opinion survey to provide insight into the views
of employees.
†Alternative Performance Measures
We use a range of measures to monitor the financial performance of the Group.
These measures include both statutory measures in accordance with IFRS and
alternative performance measures (APMs) which are consistent with the way that
the business performance is measured internally.
APMs are not defined by IFRS and therefore may not be directly comparable with
similarly titled measures reported by other companies. APMs should be
considered in addition to, and are not intended to be a substitute for, or
superior to, IFRS measures. Adjusted measures of profitability represent the
equivalent IFRS measures adjusted for specific items that we consider relevant
for comparison of the Group's business either from one period to another or
with similar businesses. We report adjusted measures because we believe they
provide both management and investors with useful additional information about
the financial performance of the Group's businesses.
APM Closest equivalent IFRS measure Adjustments to reconcile to IFRS measure Definition and purpose
REVENUE MEASURES
Accommodation sales Revenue Exclude non-room revenue such as food and beverage Premier Inn accommodation revenue excluding non-room income such as
food and beverage. The growth in accommodation sales on a year-on-year basis
is a good indicator of the performance of the business.
Reconciliation: Note 2
Average room rate (ARR) No direct equivalent Refer to definition Accommodation sales divided by the number of rooms occupied by guests. The
directors consider this to be a useful measure as this is a commonly used
industry metric which facilitates comparison between companies.
Reconciliation 52 weeks to 26 February 2026 52 weeks to 27 February 2025
UK accommodation sales (£m) 2,024.9 2,010.1
Number of rooms occupied by guests ('000) 24,710 25,279
UK average room rate (£) 81.95 79.52
Germany accommodation sales (£m) 220.8 197.6
Number of rooms occupied by guests ('000) 2,811 2,631
Germany average room rate (£) 78.53 75.08
UK like-for-like accommodation sales growth Movement in accommodation sales per the segment information (Note 2) Accommodation sales from non like-for-like Year over year change in accommodation revenue for outlets open for at least
one year with no significant changes in room numbers. The directors consider
this to be a useful measure as it is a commonly used performance metric and
provides an indication of underlying revenue trends.
Reconciliation 52 weeks to 26 February 2026 52 weeks to 27 February 2025
UK like-for-like accommodation sales growth 0.2% (2.0%)
Impact of extensions > 5% of rooms 0.1% 0.0%
Contribution from net new hotels 0.4% 2.1%
UK accommodation sales growth 0.7% 0.1%
Revenue per available room (RevPAR) No direct equivalent Refer to definition Revenue per available room is also known as 'yield'. This hotel measure is
achieved by dividing accommodation sales by the number of rooms
available. The directors consider this to be a useful measure as it is a
commonly used performance measure in the hotel industry.
Reconciliation 52 weeks to 26 February 2026 52 weeks to 27 February 2025
UK accommodation sales (£m) 2,024.9 2,010.1
Available rooms ('000) 31,244 31,206
UK REVPAR (£) 64.81 64.42
Germany Accommodation sales (£m) 220.8 197.6
Available rooms ('000) 4,074 3,882
Germany REVPAR (£) 54.19 50.90
INCOME STATEMENT MEASURES
Adjusted operating profit/loss Profit/loss before tax Adjusting items Profit/loss before tax, finance costs/income and adjusting items
(Note 4), finance income/costs (Note 5) Reconciliation: Consolidated income statement
Adjusted(1) tax Tax expense/credit Adjusting items Tax expense/credit before adjusting items.
(Note 4) Reconciliation: Consolidated income statement
Adjusted profit/loss before tax Profit/loss before tax Adjusting items Profit/loss before tax and adjusting items.
(Note 4) Reconciliation: Consolidated income statement
Adjusted basic EPS Basic EPS Adjusting items Adjusted profit attributable to the parent shareholders divided by the basic
weighted average number of ordinary shares in issue during the year after
(Note 4) deducting treasury shares and shares held by an independently managed share
ownership trust (ESOT).
Reconciliation: Note 7
Profit/PBT margin No direct equivalent Refer to definition Segmental adjusted profit before tax divided by segmental adjusted revenue, to
demonstrate profitability margins of the segmental operations.
Reconciliation: Business review
BALANCE SHEET MEASURES
Net cash/debt Total liabilities from financing activities Excludes lease liabilities, other Cash and cash equivalents after deducting total borrowings. The directors
consider this to be a useful measure of the financing position of the Group.
financial liabilities and derivatives
Reconciliation: Note 12
held to hedge financing activities
Adjusted net cash/debt Total liabilities from financing activities Exclude lease liabilities and derivatives held to hedge financing activities. Net cash/debt adjusted for cash, assumed by ratings agencies to not be readily
Includes an adjustment for cash assumed by ratings agencies to not be readily available, and excluding unamortised debt-related fees. The directors consider
available this to be a useful measure as it is aligned with the method used by ratings
agencies to assess the financing position of the Group. Unamortised debt costs
of £5.9m (including unamortised arrangement fees of £4.0m) as well as £1.1m
in relation to a fair value credit are included within the carrying value of
borrowings.
Reconciliation As at 26 February 2026 As at 27 February 2025
£m £m
Net debt 709.3 483.4
Less: unamortised debt costs 5.9 7.6
Less: bond fair value adjustment 1.1 -
Restricted cash adjustment 10.0 10.0
Adjusted net debt 726.3 501.0
Lease-adjusted net debt/cash Total liabilities from financing activities Exclude lease liabilities. Includes an adjustment for cash assumed by rating In line with methodology used by credit rating agencies, lease-adjusted net
agencies to not be readily available debt includes Lease debt which is calculated at 8x Cash rent. The directors
consider this to be a useful measure as it forms the basis of the Group's
leverage targets.
Reconciliation As at 26 February 2026 As at 27 February 2025
£m £m
Adjusted net debt 726.3 501.0
Lease debt 2,827.2 2,580.8
Lease-adjusted net debt 3,553.5 3,081.8
Net debt/cash and lease liabilities Cash and cash equivalents less total liabilities from financing activities Refer to definition Net debt/cash plus lease liabilities. The directors consider this to be a
useful measure of the financing position of the Group.
Reconciliation As at 26 February 2026 As at 27 February 2025
£m £m
Net debt 709.3 483.4
Lease liabilities 4,523.1 4,233.8
Net debt and lease liabilities 5,232.4 4,717.2
CASH FLOW MEASURES
Lease-adjusted net debt to EBITDAR for leverage No direct equivalent Refer to definition This measure is a ratio of lease-adjusted net debt compared against the
Group's adjusted EBITDAR. The directors use this to monitor the leverage
position of the Group. This measure may not be directly comparable with
similarly titled measures utilised by credit rating agencies, however on a
normalised basis these measures would be expected to move proportionally in
the same direction.
Reconciliation 52 weeks to 26 February 2026 52 weeks to 27 February 2025
Lease-adjusted net debt 3,553.5 3,081.8
Adjusted EBITDAR 1,073.9 1,029.9
Lease-adjusted net debt to adjusted EBITDAR for leverage 3.3x 3.0x
Adjusted operating cash flow Cash generated from operations Refer to definition Adjusted operating profit/loss adding back depreciation and amortisation and
after IFRS 16 interest and lease repayments and working capital movement. The
directors consider this a useful measure as it is a good indicator of the cash
generated which is used to fund future growth, shareholder returns, tax,
pension and interest payments.
Reconciliation 52 weeks to 26 February 2026 52 weeks to 27 February 2025
Adjusted operating profit 648.9 629.6
Depreciation - right-of-use assets 208.6 194.3
Depreciation - property, plant and 184.4 177.3
equipment
Amortisation 33.2 30.2
Adjusted EBITDA (post-IFRS 16) 1,075.1 1,031.4
Interest paid - lease liabilities (177.0) (166.7)
Payment of principal of lease liabilities (172.9) (148.7)
Net lease incentives received/(paid) (3.1) 2.7
Movement in working capital (9.5) 4.6
Adjusted operating cash flow 712.6 723.3
Cash capital expenditure No direct equivalent Refer to definition Cash flows on property, plant and equipment including pre-paid amounts,
investment in intangible assets, payments of deferred and contingent
(cash capex) consideration, and capital contributions or loans to joint ventures.
OTHER MEASURES
Adjusted EBITDA Operating profit Refer to definition Adjusted EBITDA (post-IFRS 16) is profit before tax, adjusting items,
interest, depreciation and amortisation. Adjusted EBITDA (pre-IFRS 16) is
(post-IFRS 16), further adjusted to remove rent expense. Adjusted EBITDAR is profit before
tax, adjusting items, interest, depreciation, amortisation, variable lease
Adjusted EBITDA payments and rental income. The directors consider this measure to be useful
as it is a commonly used industry metric which facilitates comparison between
(pre-IFRS 16) companies. The Group's RCF covenants include measures based on adjusted EBITDA
(pre-IFRS 16).
and Adjusted EBITDAR
Reconciliation 52 weeks to 26 February 2026 52 weeks to 27 February 2025
Adjusted operating profit 648.9 629.6
Depreciation - right-of-use assets 208.6 194.3
Depreciation - property, plant and equipment 184.4 177.3
Amortisation 33.2 30.2
Adjusted EBITDA (post-IFRS 16) 1,075.1 1,031.4
Variable lease payments 3.5 4.0
Rental income (4.7) (5.5)
Adjusted EBITDAR 1,073.9 1,029.9
Rent expense, variable lease payments and rental income (348.1) (323.4)
Adjusted EBITDA (pre-IFRS 16) 725.8 706.5
Return on Capital Employed (ROCE) No direct equivalent Refer to definition Adjusted operating profit/loss (pre-IFRS 16) for the year divided by net
assets at the balance sheet date, adding back net debt/cash, right-of-use
assets, lease liabilities, taxation assets/liabilities, the pension
surplus/deficit and derivative financial assets/liabilities, other financial
liabilities and IFRS 16 working capital adjustments. The directors consider
this to be a useful measure as it expresses the underlying operating
efficiency of the Group and is used as the basis for remuneration targets.
52 weeks to 26 February 2026
Reconciliation UK & Ireland
Total £m
£m
Adjusted operating profit 648.9
Depreciation - right-of-use assets 208.6
Rent expense (349.3)
Adjusted operating profit (pre-IFRS 16) 508.2 494.2
Net assets 3,136.4
Net debt 709.3
Net current tax assets (4.5)
Net deferred tax liabilities 233.7
Pension surplus (131.9)
Derivative financial assets (0.1)
Derivative financial liabilities 9.5
Lease liabilities 4,523.1
Right-of-use assets (3,838.1)
IAS 17 rent adjustments (65.0)
Adjusted net assets 4,572.4 3,886.6
Return on capital employed 11.1% 12.7%
52 weeks to 27 February 2025
Reconciliation UK &
Total Ireland
£m £m
Adjusted operating profit 629.6
Depreciation - right-of-use assets 194.3
Rent expense (324.9)
Adjusted operating profit (pre-IFRS 16) 499.0 497.3
Net assets 3,334.5
Net debt 483.4
Current tax liabilities 12.2
Deferred tax liabilities 234.8
Pension surplus (134.6)
Derivative financial assets (19.9)
Derivative financial liabilities 1.4
Lease liabilities 4,233.8
Right-of-use assets (3,662.7)
IAS 17 rent adjustments (65.0)
Adjusted net assets 4,417.9 3,844.2
Return on capital employed 11.3% 12.9%
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