Join our community of smart investors

Closures push Whitbread into half-year loss

The group is hoping to take market share from embattled independents
October 27, 2020
  • Coronavirus restrictions weigh upon bookings, pushing the Premier Inn owner into loss
  • Whitbread conducts £340m impairment of German assets in response to the pandemic
IC TIP: Sell at 2,271p

It comes as no surprise that Whitbread’s (WTB) sales sit at less than a quarter of their level at the 2019 half-year mark. The majority of its sites were closed for a large part of the period under review. The owner of Premier Inn flagged the extent of its turnover decline in a September trading update, preparing the market for interim results that would spell out the destructive impact of coronavirus restrictions and changing travel habits upon the hotel industry. Whitbread isn’t providing long term guidance, but it expects the UK’s new tiered approach to Covid-19 to play a part in a further drop-off in bookings across November and December.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in