Whitbread continues to deliver the goods
Whitbread Q1 trading update confirms solid start to year – remains in the GrowthRater portfolio
The recent consumption data for May from VISA that I highlighted earlier in the month which showed a relatively buoyant YoY growth in expenditure of +3.3% for Hotels, Restaurants and Bars was also reflected in Whitbread’s Q1 trading update. While the +7.6% advance in revenues was broadly in line with expectations, it included a firmer rate of like for like growth of +2.6%, including Premier Inns RevPar of +2.9%, o/w like for like was an impressive +8.9%.
The group’s heavy exposure to UK domestic consumption continues to leave it out of favour with investors over the probably tortuous Brexit negotiations and macro economic headwinds. Underlying this however is a proven brand and expansion model that with the further improvements in RevPar suggest further opportunity value. For more detail on the CROIC and valuation please check out the Analytics section