Whitbread shares up as hotel chain sticks to guidance

Whitbread (LSE: WTB) shares rose over 2% Thursday morning after the Premier Inn owner reported robust third-quarter sales growth but maintained its full-year outlook.

The company posted an 11% jump in UK accommodation sales for the 13 weeks to November 30, thanks to “strong demand” in London and other regions. Total Q3 revenues per available room climbed 9% year-on-year. Premier Inn sales in Germany soared 47%.

Whitbread said it remains “comfortable” with its guidance for a £30-40 million pretax loss in fiscal 2023. It still expects 3-4% net cost inflation this year.

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CEO Dominic Paul said “positive current trading” and Whitbread’s “clear commercial plan” keep him confident in the hotel chain’s future, despite economic clouds on the horizon. The company is “on track” to break even in Germany in 2024, Paul added.

Whitbread shares are up over 25% over the past 12 months.