Premier Inn and Beefeater owner Whitbread has raised its interim dividend and announced a share buyback despite flat revenue.
The hotel and restaurant chain told markets this morning that revenue was unchanged year on year in the six months ended 29 August at £1.57bn.
It has raised its interim dividend seven per cent to 36.4p per share and announced a £100m share buyback to be completed by 1 May 2025.
Adjusted earnings before interest, tax, depreciation and amortisation and restructuring costs (EBITDAR) fell by three per cent to £611m, while adjusted profit before tax fell 13 per cent to £340m.
Profit after tax fell by 25 per cent, from £293m in the first half of last year to £220m.
Sales of Premier Inn hotel rooms in the UK, which account for 12 per cent of the UK’s hotel room market, rose by one per cent, while food and beverage sales fell by seven per cent.
Earlier this year, Whitbread sold off a number of its worst-performing pubs and restaurants.
Whitbread described the results as a “robust performance in a slightly softer market.”
UK performance was partially offset by a 22 per cent rise in accommodation sales in Germany.
Dominic Paul, Whitbread chief executive, said: “We are making excellent progress with our plans and over the next five years are set to deliver a step change in our performance which will fund significant returns to shareholders.
“In the UK… we are determined to build on our significant outperformance since the pandemic and whilst the market has been slightly softer than last year, we remain on course to grow our UK returns substantially over the medium-term whilst continuing to deliver for our customers, as evidenced by our high guest scores.
“In Germany, we are really encouraged by our progress to date. Our trading performance and the progressive maturity of our estate mean we are set to reach breakeven on a run-rate basis later this year.”