Proactive Investors - Premier Inn owner Whitbread PLC (LSE:LON:WTB), up 5% on Tuesday, predicted a continuation of the success of 2023’s results after it confirmed its operations also doing well in the new financial year.
In Germany, despite operations in the area still making a loss, trade has already picked up in the seven weeks to April.
Compared to 2023 levels in the same period, accommodation sales have jumped by 140%.
Revenue per available room has jumped from €37.04 reported in the 2023 financial year to €47.94 (£42.50).
In the UK, sales are up 17% in the first two months of 2024 trading, and RevPAR (revenue per room) is at £60.98 from £59.45.
The group even reported that its Westminster hotels were all sold out for the Coronation of King Charles III.
“Total UK food and beverage sales were up 10% vs the same period in 2023’s financial year, reflecting softer trading in the base year as well as a number of commercial initiatives put in place since the start of the year,” the hospitality firm added.
In 2024, Whitbread is hoping to open 1,500-2,000 rooms in the UK and 1,000-1,500 in Germany.
The group warned that these new openings could weigh on underlying earnings by as much as £30mln in Germany and £16mln in the UK.
Yet, the positive performance so far has left analysts confident profits will fly higher in 2024.
The hotel, restaurant and pub operator is currently predicting pre-tax profits to come in at £384mln in 2024.
However, after underlying profits reached £375mln in 2023, analysts are anticipating further growth.
Barclays expects profit before tax to reach £416mln in 2024, while Peel Hunt Ltd is slightly more confident estimating £437mln.
Analysts at UBS Group AG haven’t offered a pre-tax estimate but believe EBIT will be £563mln and net earnings will amount to £331mln.
At Shore Capital Group, the group had originally cited pre-tax earnings would fall by £10mln in 2024 but after Tuesday’s results has said it “would expect to see year-on-year profit growth.”