Latest news with #DominicPaul
Times
a day ago
- Business
- Times
Is it worth buying Whitbread shares right now?
It is only a matter of time before Whitbread changes its name to Premier Inn. Ever since it started the Travel Inn chain in 1987, augmented by Premier Lodge in 2004, hotels have gradually been elbowing other activities — brewing, coffee shops, pubs — out of the nest. It has reached the point where food and beverage revenues and profits are no longer broken out in the annual report's segmental analysis. Instead, the two named divisions are Premier Inn UK & Ireland, and Germany. The restaurants, under the names Beefeater, Brewers Fayre and others, are either being sold or turned into Premier Inn rooms. One or two particularly profitable outposts may linger, but even they will soon surely not be worth the management time to monitor them. So the group is changing before our eyes, and is heading towards becoming a UK and Europe-wide budget hotel chain. Much hard work has gone into adapting the Premier Inn formula for Germany since the first one opened in Frankfurt nine years ago. That will inspire a rollout to other countries. A toe has already been dipped in the water in Austria, and for some years there has been a Middle East joint venture with Emirates Group. The German experience will provide a natural platform for expanding to Scandinavia and other northern European territories. Dominic Paul, the chief executive, told The Times last month: 'We are proving Premier Inn can grow and that, once the right model is in place, we can grow quite quickly. We're getting to a point where the German business is learning from the UK business and the UK is learning from Germany.' It is still a work in progress, and the transition was well illustrated by the results for the year to the end of February. Total revenue and adjusted earnings before interest, tax, depreciation and amortisation actually edged down a touch, to £2.9 billion in the UK and £1 billion in Germany. UK business revenues fell 3 per cent to £2.7 billion, while revenues in Germany rose £41 million or 21 per cent to £231 million. UK adjusted pretax profit fell from £588 million to £507 million thanks to cost inflation and lower interest income. But cost savings in Germany cut the loss there from £36 million to £11 million, so it is going in the right direction and in 2025 profits should begin to flow. Paul seems to have imbibed the Peter Drucker idea of management by objectives. The latest Whitbread annual report is replete with targets, led by the three-pronged strategy to grow and innovate in the UK; focus on strengths to grow in Germany; and enhance capabilities to support long-term growth. There is, of course, a five-year plan, to recycle at least £1 billion of its most mature property, to generate at least £300 million of incremental profit, distribute more than £2 billion in share buy-backs and dividends, and expand the estate from 86,000 to 98,000 rooms, all by 2030. Some rooms will be converted from existing attached restaurants, and 5,000 are earmarked for Germany. As the group is deep into hospitality, it has been held back by sluggish economic growth in Germany and the UK, and the effects of last October's UK budget, which increased national insurance contributions and the minimum wage. That was reflected in the share price, which tumbled from £33 to £23. Since April, however, it has climbed nearly all the way back up, reaching £32 on the back of the general stock market recovery and the prospect of falling interest rates. The planned £250 million share buyback did no harm, either. Last month's first-quarter figures sent the analysts back to their spreadsheets, as total revenue and revenue per available room both fell by 2 per cent. The UK outside London was the laggard, while Germany steamed ahead by 16 per cent. None of that phased Paul, who preferred to point to the five-year plan. 'In the UK, we continue to outperform against a challenging market backdrop,' he said. Clearly the real returns are not going to break through until the economic background improves. Peel Hunt rates the shares a buy, saying: 'Whitbread continues to create value: room openings are accelerating, skewed to higher-priced London, business market penetration is growing and independent competitors are struggling.' They see earnings per share bursting from 193.4p to 234.3p by February 2028, for a prospective 13.2 price-earnings ratio and a 3.8 per cent dividend. ADVICE HoldWHY A sound long-term expansion prospect at the end of the road
Scottish Sun
17-07-2025
- Business
- Scottish Sun
Family favourite restaurant chain with 800 sites shuts ‘landmark' branch for good in huge blow to locals
Hints of a surprising takeover emerge after sudden closure of a long-standing restaurant LAST ORDERS Family favourite restaurant chain with 800 sites shuts 'landmark' branch for good in huge blow to locals A POPULAR restaurant that's become a local landmark has shut for good, leaving nearby residents gutted. The venue at Emersons Green in Bristol, served its last meal on Thursday July 10. 3 However, the neighbouring Premier Inn will remain open with its own integrated breakfast area for hotel guests. Credit: Beefeater 3 Nothing has yet been announced It's now listed as 'permanently closed' online, with no official signage or farewell notice on the former Beefeater building. However, the neighbouring Premier Inn will remain open with its own integrated breakfast area for hotel guests. Speculation is already circling online about what's next for the site, with some locals suggesting it may be taken over by the Papas Group – the team behind Papas Fish and Chips and Wendy's. Sudden closure A spokesperson for Whitebread Group, which owns Beefeater and Premier Inn, told BristolLive: 'We'd like to thank our wonderful guests and team for their service and custom over the years. 'The nearest Beefeater is now The Gifford (Fox Den Road, Stoke Gifford) and we do hope to welcome people there.' Whitbread added that the site had been sold to another restaurant business, but stopped short of naming which one. The closure comes as part of the company's 'Accelerating Growth Plan', which aims to replace underperforming restaurants with hotel rooms in high-demand areas. Over the next two years, Whitbread plans to exit 126 branded restaurants across the UK, 21 of which are being sold for £28 million . Britain's retail apocalypse: why your favourite stores KEEP closing down As part of the overhaul, the business will also be converting 112 restaurant spaces into integrated dining areas within its Premier Inn hotels – a format already used at 387 sites across the country. The plan is expected to cut around 1,500 roles out of a workforce of 37,000. However, Whitbread says it will try to offer alternative roles to affected staff through redeployment or its wider recruitment process, which sees around 15,000 hires each year. Dominic Paul, Chief Executive Officer of Whitbread, said: 'When I joined Whitbread as CEO in January 2023, it was clear to me that we had a high performing hotels business, with a strong platform for growth in both the UK and Germany. 'Our strategy of continuing to invest in our brand, teams, and estate for the benefit of our guests and customers has secured a market-leading position for Premier "Inn in the UK and is also delivering strong business performance. 'This plan is a further positive step, delivering a better experience for our hotel guests and helping to extend our market leadership in the UK. 'I recognise that these changes will be unsettling for affected team members and we are committed to working hard to enable as many as possible of those affected to stay with Whitbread... Our teams are at the heart of our guest experience.' This latest shutdown adds to a growing list of closures across the UK food scene. Other recent closures Recently, Frankie & Benny's axed 35 restaurants, Prezzo shut 46 sites, and Pizza Express pulled the plug on three branches. Even Nando's has quietly closed a coup. The Sun has approached Beefeater for further comment. Why are retailers closing stores? RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis. High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going. The high street has seen a whole raft of closures over the past year, and more are coming. The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested. Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector. It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022. The centre's director, Professor Joshua Bamfield, said the improvement is "less bad" than good. Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams. "The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend," Prof Bamfield said. "Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult." Alongside Wilko, which employed around 12,000 people when it collapsed, 2023's biggest failures included Paperchase, Cath Kidston, Planet Organic, Snug and Tile Giant. The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing. However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses. The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.
Times
27-06-2025
- Business
- Times
Premier Inn owner sets sights on Germany
The Premier Inn located in the back garden of Messe Frankfurt, the city's trade fair, has a different buzz about it compared with a typical British branch of the budget hotel chain. Dozens of cycling fanatics from around the world, including the United States and China, have descended on the hotel's plush bar to enjoy happy hour-priced steins of cold beer and cocktails before the five-day Eurobike festival taking place at Messe this week. It's an exciting event for Dominic Paul, the self-confessed cyclist and motorbike enthusiast who is chief executive of the Premier Inn owner, Whitbread, and has placed a big bet on the FTSE 100 group's growing German business. The hotel chain, originally called Travel Inn, was launched by Whitbread in 1987 in Basildon, Essex, two years after the launch of Travelodge by the old Forte Group catering empire.
Skift
19-06-2025
- Business
- Skift
Premier Inn Turns to High-Margin Rooms to Offset UK Hotel Weakness
Premier Inn says it's outperforming rivals in a soft UK market, but it's doing so by squeezing more value from fewer guests, not a rebound in demand. Premier Inn-owner Whitbread reported a drop in UK accommodation sales in its fiscal first quarter and is trying to offset weaker demand by charging guests for room upgrades and add-ons. UK accommodation revenue declined 2% for the period that ended May 29. RevPAR also fell 2%, while occupancy dropped to 78.6%, down more than 3 points from last year. Trading "was against a softer demand backdrop," Whitbread CEO Dominic Paul said on the company's earnings call Thursday. 1. Upselling to lift spend per guest: With fewer bookings, Premier Inn is tryi
The Herald Scotland
19-06-2025
- Business
- The Herald Scotland
Premier Inn bosses upbeat as hotels planned for Edinburgh
Whitbread reported that total Premier Inn UK accommodation sales decreased by 2% in the 13 weeks to May 29, compared with the same period last year. Total revenue per available room (RevPAR) was also down 2%. Accommodation sales in London Premier Inns declined by by 2.4% and RevPAR plunged by 5.5%, although the company performed ahead of its competitors in the UK capital. In Germany, Premier Inn accommodation sales growth slowed from 23% in the first seven weeks to 15% for the first quarter. Meanwhile Whitbread, which operates restaurants trading under brands such as Beefeater, Brewers Fayre and Table Table, said food and beverage sales tumbled by 16%, in part because it offloaded some underperforming restaurants and converted some into more hotel rooms. Read more: Russ Mould, investment director at stockbroker AJ Bell, said: 'How much does it matter if you're doing better than the wider market and still struggling? That's the question in front of the market as Whitbread updates on its first-quarter trading. 'The Premier Inn owner has a proposition which is relatively affordable and reliable – anyone booking a room knows what they are going to get and that is a key selling point. 'However, the key revenue per available room metric is still trending negative for its domestic business thanks to the weak backdrop for the UK hotels market as a whole amid an uncertain economic backdrop. 'With visibility limited, all the company can do is control what it can and hope that it comes out of this difficult period with its competitive position enhanced thanks to weaker players and independent operators falling by the wayside.' Whitbread chief executive Dominic Paul gave an upbeat assessment of the company's performance, declaring it was 'making excellent progress' with its accelerating growth plan, which involves converting 112 branded restaurants into new hotel rooms and selling 126 more. The plans announced in April 2024 will also see around 1,500 jobs axed as it looks to save about £150 million over the next three years. Mr Paul highlighted progress with plans to expand Whitbread's hotel network in the UK and Germany, which currently numbers more than 900 properties. And he said Whitbread was 'on course to deliver £60m of cost efficiencies and meet our target of £250m-£300m of property disposal proceeds this year'. He added: 'Our five-year plan is on track and will deliver a step change in profits, margins and returns over the next few years. 'In the UK, we continue to outperform against a challenging market backdrop, with the strength of our brand and commercial programme continuing to drive total accommodation sales and RevPAR growth ahead of the market. Whilst the short-lead nature of our business means that our forward visibility remains limited, our forward booked position is ahead of last year and we remain confident that we can continue to outperform the market. 'In Germany, we delivered another strong trading performance, led by the increasing maturity of our estate and our commercial initiatives. Our total estate is outperforming the M&E (midscale and economy) market, and we remain on course to deliver profitability in FY26.'
