By Shanima A
(Reuters) -Bookings at British hotel group Whitbread are picking up for the holiday season, the company said on Wednesday, after reporting a fall in first-half profit.
Whitbread shares rose more than 4% in early trade after the group, which also owns restaurant and pub chains such as Beefeater and Bar+Block Steakhouse, raised its interim dividend and announced a share buyback programme worth 100 million pounds ($129.95 million).
“After a slightly softer start in September we’ve seen trading pick back up and we’re outperforming the market,” CEO Dominic Paul told Reuters.
UK revenue per available room (RevPAR) – an important metric for the hospitality industry – was at 72 pounds in the six weeks to Oct 10, down 4% on the year, but was now picking up.
First-half results showed a 13% fall in pretax profit to 340 million pounds for the six-month period ended Aug. 29.
Whitbread said it was targeting more than 2 billion pounds in shareholder returns over the next five years. By 2030, it also expects to increase profit by at least 300 million pounds versus fiscal 2025.
Paul said that demand in the leisure industry was strong overall and the group was seeing bookings into next year.
Demand for travel has normalised after a years-long boom following the COVID-19 pandemic as holiday makers and travelers baulk at higher prices.
“If the economy continues to stabilise and consumer confidence begins to rebuild, Whitbread’s emphasis on hotel expansion should position it well for increased demand for travel and accommodation over the vital Christmas period” said Julie Palmer, Partner at Begbies Traynor.
In April, Whitbread laid out plans to close 238 underperforming branded restaurants, resulting in 1,500 job cuts in the UK.
Shares of Whitbread, which also operates in Germany, are down 13% so far this year, trading up nearly 5% at 3,224 pence at 1027 GMT.
($1 = 0.7695 pounds)
(Reporting by Shanima A in Bengaluru; Editing by Sherry Jacob-Phillips and Elaine Hardcastle)
