The company, which runs the Premier Inn hotel chain as well as pub chains Beefeater and Brewers Fayre, said this was in line with expectations.
It added the impact of its accelerating growth plan would optimise its F&B offer at a number of sites and unlock 3,500 new extension rooms.
The company previously revealed it planned to optimise the food offer to enhance the proposition for Premier Inn hotel guests and increase efficiencies through converting 112 lower-returning branded restaurants into new rooms after transferring the delivery of F&B to an integrated restaurant and exiting 126 underperforming restaurants.
At the end of 2024 Whitbread accepted offers on 51 of its sites for £56m.
Accommodation sales down
However, the company reported that in the UK total accommodation sales were down 2% versus last year with total RevPAR was down 2%.
Whitbread chief executive Dominic Paul said: “We continue to execute our strategic priorities at pace and are making excellent progress with our accelerating growth plan and network expansion in both the UK and Germany.
“We also remain on course to deliver £60m of cost efficiencies and meet our target of £250m to £300m of property disposal proceeds this year.
“Our five-year plan is on track and will deliver a step change in profits, margins and returns over the next few years.”
He added: “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.”
Trading momentum
Commenting on the results, Julie Palmer, partner at financial advisors Begbies Traynor, said that the UK’s largest hotelier was “feeling the squeeze.”
“Slower trading momentum and limited forward sales visibility will leave the market wary, especially as weak consumer confidence and rising costs from the budget continue to pile on the pressure.
“That said, Whitbread’s focused growth plan and streamlining efforts suggest it is playing the long game,” said Palmer.
She continued: “As the hospitality sector battles fierce headwinds, Premier Inn’s low-cost, convenience offering gives it a clear edge at a time when consumers are being selective about spending.
“The key now will be driving efficiencies to keep prices low and customers coming through the doors.”
