Whitbread Q3 Sales Climb 2% as Accommodation Demand Strengthens in the UK and Germany

Whitbread Plc (LSE:WTB) reported a 2% increase in group sales for the third quarter on Tuesday, driven by stronger accommodation demand across both the UK and Germany.

Total group revenue reached £781 million for the quarter, up on the same period last year. The UK-based hospitality group said trading improved across its Premier Inn UK and Premier Inn Germany businesses, while UK food and beverage sales declined.

In the UK, accommodation revenue rose 2%, supported by a 3% increase in revenue per available room (RevPAR). Whitbread said it continued to command a RevPAR premium relative to the midscale and economy hotel market. By contrast, UK food and beverage sales fell 4%, which the company linked to changes under its Accelerating Growth Plan, including the conversion of some lower-return restaurant formats into higher-return concepts.

Germany delivered a particularly strong performance, with accommodation sales increasing 12% in local currency terms, or 16% in sterling. Estate-wide RevPAR rose 7% to €76, while RevPAR at more established sites increased to €86. Whitbread said this outperformed the broader midscale and economy market in Germany.

Looking at more recent trading, Whitbread said that in the six weeks to 8 January 2026, UK accommodation sales and RevPAR were both up 4%. In Germany, accommodation sales grew 11% over the same period, with RevPAR rising 5% to €56.

Chief executive Dominic Paul said the group maintained strong momentum during the quarter. “We delivered a strong performance in the third quarter, with positive momentum,” he said in a statement.

The company also upgraded its expected cost efficiencies for the 2026 financial year, now forecasting savings of £75 million to £80 million across labour, technology and procurement, compared with previous guidance of £65 million to £70 million.

Following the UK Budget, Whitbread updated its outlook for fiscal 2027, estimating the impact of proposed business rates changes at around £35 million, lower than its earlier £40 million to £50 million estimate. Gross UK cost inflation is expected to be between 6.5% and 7.5%, with net UK cost inflation forecast at 3% to 4% after accelerated efficiency measures.

During the quarter, Whitbread completed sale-and-leaseback transactions worth £89 million and said it remains on track to finish its previously announced share buyback programme by April 2026, having repurchased 7.7 million shares to date.