Russ Mould, investment director at AJ Bell, said: “Whitbread is still struggling to win over the market despite an upbeat trading statement.
“Bookings have improved in the UK and Germany, although earnings visibility remains limited.
“The leisure group is undergoing a strategic shift whereby some of its food and drink spaces situated alongside accommodation are being converted to more hotel rooms, while a plan is in place to exit standalone branded restaurants.
“The end goal is a pure-play hotels business, but the journey will take time and that means the cash flow benefits are a story for another day.”
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