Whitbread reveals plans to cut spending in 2009 due to downturn

08 December 2008 by
Whitbread reveals plans to cut spending in 2009 due to downturn

Premier Inn owner Whitbread today revealed it will cut capital expenditure by a third next year and rein in its organic expansion plans in response to looming recession.

Although the company reported "resilient performance" for the 39 weeks to 27 November, it warned of some softening of growth in November and said that the deteriorating outlook would cut 2009 expenditure to £200m (2008: £300m).

Alan Parker, chief executive, said: "We have been reviewing our future development plans as the macro-economic situation has become increasingly challenging.

"We believe that while this environment remains we should take a more prudent approach to organic expansion."

Parker stressed that Whitbread would continue to invest in its existing estate as well as "selected new high returning projects". It will also maintain a landbank for future development

Total group sales across Whitbread grew by 13.4% in the period, while like-for-like sales were up 6.7%. The hotels and restaurants division saw total sales rising by 11.5% with like-for-like sales up by 7.4%. Sales at Costa Coffee increased by 22% in the period, with like-for-like sales up by 2.6%.

Premier Inn opens green hotel>>
Premier Inn plans to convert Amstrad HQ into hotel>>

Whitbread's value-for-money segments helps boost half-year profits>>

Alan Parker - bringing Whitbread into focus>>

Whitbread to combine hotel and restaurant businesses with small job losses>>

By Daniel Thomas

E-mail your comments to Daniel Thomas here.

Caterersearch.com jobs
Looking for a new job? Find your next hotel job here with Caterersearch.com jobs

The Caterer Blog](http://www.caterersearch.com/blogs/catering-news-blog/) Catch up with more news and gossip on the Caterer Blog here
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking