Derren Nathan, head of equity research, Hargreaves Lansdown, said: “As England got off to a steady start at the World Cup, Whitbread checked in with a resilient opening quarter of its own.
“In the core UK division, accommodation sales were up three per cent in the first quarter, a meaningful acceleration from the 1.9 per cent reported for the first eight weeks.
“Around two-thirds of the growth was organic, with the rest from new rooms.
“London led the way with a seven per cent sales increase, shrugging off concerns of a fall in visitor numbers due to the conflict in the Middle East.
“Growth has also quickened in the younger German division, with accommodation sales expanding 13 per cent compared to nine per cent at the eight-week point.
“Whitbread continues to outperform the wider hotels market, and once the planned scale-back in its food and beverage operations washes through, this should become more apparent in its headline financials.
“Today’s figures should go down well, and looking ahead, strong bookings and the de-escalation of geopolitical tensions paint a positive backdrop.
“However, with UK cost inflation running at around four per cent, firing profit growth into the top corner could be a tougher ask this year.”
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