Whitbread claims flying start after restructure
Whitbread is claiming a "flying start" for its restructured businesses after reporting a 23% rise in operating profits in its hotels, restaurants and sports centres in the year to 3 March.
Over the past year, the company has sold its breweries, its off-licences and its 3,000 pubs. It is concentrating on Travel Inn and Marriott hotels, its more profitable restaurants, and its David Lloyd fitness centres.
Group turnover fell by 17% to £3.1b. Pre-tax profits dropped by 4% to £335m, before exceptional items. In the new core businesses, turnover rose by 17% to £1.7b, and operating profit before exceptionals was up by 22% to £241m.
Occupancy at Marriott was 75%, the same as in the previous year, but achieved room rates rose by 8% to £83.13. Occupancy at Travel Inn was slightly down at 82% but average room rate rose by 5% to £36.99.
Travel Inn opened 29 hotels in the year, taking its total to 262.
In restaurants, Whitbread will spend £200m opening 80 Brewers Fayre and Brewsters pub-restaurants in the UK over the next three years. It is converting 45 Beefeater restaurants to a new format called Out and Out, but has scrapped plans for a second new format, Banter.
In October, Whitbread announced that it was selling 140 of its worst-performing restaurants. It is close to signing deals on 30.
See www.caterer.com/news for further details.
by David Shrimpton