Premier Inn owner Whitbread to axe 3,800 roles in cost-cutting drive

Whitbread has unveiled a new five-year plan to drive cost efficiencies and deliver £2b in returns to its shareholders through cutting 3,800 roles across its 30,000-strong UK and Ireland workforce.

The business said it expects “to retain a significant proportion of those affected” through ongoing consultation of these roles. The strategy aims to save the hotel group’s UK arm £250m over the next five years.

As part of its cost-saving drive, Whitbread will also remove all branded restaurants from its properties, which chief executive Dominic Paul said will be replaced by “an integrated food and beverage offer that is preferred by our hotel guests and will unlock the addition of more highly profitable extension rooms”.

This move is forecast to reduce F&B sales by as much as £160m and reduce profits by £10m after the firm’s wider cost-saving measures.

Whitbread also plans to offload £1.5b of freehold properties, reducing the overall portion of owned properties across its portfolio from 50% to 30%.

The hotel group said it also sees “significant potential to expand” its Hub by Premier Inn brand, which has outposts in London and Edinburgh, to other cities across the UK.

Paul said: “We always challenge ourselves to improve and, in light of significant cost increases in the form of business rates and National Insurance, as well as the implied market discount to our inherent value, we’ve looked hard at the options open to us to maximise value creation over the medium and long-term.

“Our conclusion is that our model is the right one. Owning a significant proportion of our property is a unique strength which powers the growth of Premier Inn while supporting our resilience as a business, underpinned by a strong balance sheet.

“But we can improve our approach. We will refocus our capital spend and recycle more of our freehold real estate, driving increased margins and returns, reducing our capital intensity and increasing cash returns for shareholders. By making our assets work harder and focusing on the highest returning projects, we will be able to continue to take advantage of constrained supply to strengthen our position in both of our core markets, whilst at the same time deliver attractive financial outcomes for shareholders.”

Whitbread unveiled its five year plan alongside its preliminary results. The hotel group recorded flat pre-tax profit in adjusted terms in the 52 weeks to February 2026, while statutory revenue for the period was also flat year-on-year.

UK revenue per available room rose 1% during the period.

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