|Bid||0.00 x 6300|
|Ask||4,600.00 x 10000|
|Day's range||4,525.00 - 4,569.00|
|52-week range||3,870.00 - 5,162.00|
|Beta (3Y monthly)||0.66|
|PE ratio (TTM)||2.24|
|Forward dividend & yield||1.02 (2.30%)|
|1y target est||N/A|
G A Chester sees great value on offer at a well-known FTSE 100 (INDEXFTSE:UKX) brand owner, and an under-the-radar smaller company.
According to the report http://bit.ly/2VEGpuh on Saturday, the activist investor believes Whitbread's strategy is "depressing" the company's share price and is leaving it open to a cut-price hostile takeover. Citing city sources, the newspaper said Elliott wanted Whitbread to sell 10 to 15 percent of its hotel portfolio and "continue to be open minded about the rest".
Elliott Advisors has become increasingly frustrated with Whitbread Plc's strategy of owning Premier Inn hotels outright and wants the company to offload chunks of its 5.8 billion pound ($7.64 billion) property portfolio, the Sunday Telegraph reported. According to the report http://bit.ly/2VEGpuh on Saturday, the activist investor believes Whitbread's strategy is "depressing" the company's share price and is leaving it open to a cut-price hostile takeover. Citing city sources, the newspaper said Elliott wanted Whitbread to sell 10 to 15 percent of its hotel portfolio and "continue to be open minded about the rest".
Premier Inn owner Whitbread has warned that demand for its hotel rooms is being hit by an "acute period of political and economic uncertainty in the UK". Chief executive Alison Brittain said there were "ongoing signs of market weakness across both business and leisure especially in the UK regions". The warning covers a period when the UK has faced intense uncertainty over the terms of its departure from the EU - though Brexit was not specifically mentioned by the company as a factor.
Whitbread plc's (LON:WTB) shares have done well since last summer, but this Fool would consider checking out now.
A bed at a Premier Inn hotel in Liverpool. Whitbread said sales in the regions fell by 1.5% in March. Photograph: Darren Staples/Reuters Premier Inn owner Whitbread has reported a 40% fall in annual profit and warned that a drop in demand for hotel rooms had worsened in recent weeks as Brexit uncertainty discouraged bookings, particularly among business travellers outside London. Alison Brittain, the Whitbread chief executive, said the hotel market had been hit by declining business confidence over the past two years, which worsened in March and April – a time of “heightened political and economic uncertainty in the UK”. The UK was scheduled to leave the EU on 29 March, but the deadline was extended to 12 April and later to 31 October. The threat of a no-deal Brexit has forced many businesses to draw up contingency plans and to rein in spending. Brittain said: “We hear of lots of businesses [where] uncertainty is an unhelpful element … We did have a number of even large businesses not travelling at all in the March-April period. They were just asking people to cease travel.” Sales in the regions, where most of the 800 Premier Inn hotels are located, fell by 1.5% in March and revenue per available room was down 4.4% – weaker than the firm had expected. It said both business and leisure travellers were cutting back. Bookings in London have held up, however, as international visitors continue to flock to the capital. Brittain said independent hotels were struggling even more, and Premier Inn was likely to add to its 9% market share. The UK’s biggest hotel chain is pushing ahead with expansion, from 76,000 rooms to a target of 110,000 in the next few years. She hailed a “momentous year” for Whitbread, after it sold its Costa Coffee chain to Coca-Cola for £3.9bn in January, which leaves the once-sprawling brewing and leisure conglomerate with its budget hotel business and 740 restaurants located next to Premier Inns. Excluding Costa, Whitbread made a pre-tax profit of £260m in the year to 28 February, down 39% from £426m in the previous year. UK accommodation sales fell 0.6% on a like-for-like basis (excluding new hotel openings). Whitbread already warned in January that 2019-20 profits would be flat on last year. Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk The group is using the sale proceeds to return up to £2bn to shareholders and to fund its expansion in Germany, where it has opened hotels in Hamburgand Frankfurt with plans for 20 more by the end of next year. Whitbread has also wiped out its pension deficit with a one-off payment of £380m. Aside from the main Premier Inn chain, Whitbread owns 10 upmarket Hub hotels, seven in London and three in Edinburgh, and is looking at opening more Hubs in cities such as Bath and Manchester. It has also launched a new no-frills hotel brand called Zip with small pod-style rooms from £19 per night, compared with £49 at Premier Inn and £69 at Hub. The first Zip opened in Cardiff in March and another one, in Southampton, is scheduled to open towards the end of year. Brittain said Zip in Cardiff was proving popular, especially with people travelling to sporting events at weekends.
The sale of the group’s cafe division to the soft drink giant left Whitbread focused on its budget hotel unit, and here the recent performance has been disappointing. Uncertainty around Britain’s divorce from the European Union led to weaker demand at Premier Inn in the three months to February, and this worsened in March and April.
Whitbread, which has its origins as a brewer, has focused on its hotel business after Coca-Cola Co bought Costa for 3.9 billion pounds in a cash deal completed in early January. Whitbread said it expects weak room revenue growth in Britain for the financial year to next February as demand dips.
Premier Inn owner Whitbread spooked the City on Tuesday as chief executive Alison Brittain delivered a stark warning on Brexit turmoil sapping business confidence and hotel bookings. The firm is hugely exposed to the hotels market after completing a £3.9 billion sale of its Costa Coffee arm to Coca-Cola in January but says the political gloom has chilled business. Although Premier Inn’s UK sales rose 3.5% in the year to February 28, comparable sales slumped 0.6%.
A round of weak earnings across the globe and China’s manufacturing activity failed to meet expectations, highlighting weakness in the world’s second-largest economy.
These two FTSE 100 (INDEXFTSE:UKX) stocks appear to offer strong growth prospects which could boost your ISA’s performance in my opinion.
The group, which gave details of its plans at a Capital Markets Day on Wednesday, completed the $5.1 billion sale of Costa Coffee last month, has shifted the company's focus almost entirely to hotels, which includes the Premier Inn brand in Britain. Whitbread put the potential total for the number of rooms in Britain at 110,000 in the long term from an existing portfolio of 74,000 rooms. Investors have been looking for signs of an aggressive growth plan, with Whitbread flush with cash from the Costa sale.
Whitbread (Frankfurt: WHF4.F - news) will buy back an extra 2 billion pounds ($2.58 billion) of shares using proceeds from its Costa Coffee sale and aims to double the long-term network potential at its hotels business to more than 170,000 rooms in Britain and overseas. The group, which gave details of its plans at a Capital Markets Day on Wednesday, completed the $5.1 billion sale of Costa Coffee last month, has shifted the company's focus almost entirely to hotels, which includes the Premier Inn brand in Britain. Whitbread put the potential total for the number of rooms in Britain at 110,000 in the long term from an existing portfolio of 74,000 rooms.
Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess Whitbread PLC's (LON:WTB) track record on a high Read More...
Premier Inn owner Whitbread plans to keep investing in its hotel portfolio despite the Brexit-related economic challenges in its core market. The company, which operates almost 800 hotels mainly in the UK, warned of weakness in its UK hotel portfolio outside of London as consumer and business confidence declined during the third quarter. But even […] The post Premier Inn Owner Looks to Put Pressure on Independent Hotels appeared first on Skift.
Investors were left disappointed on Thursday as hotels giant Premier Inn’s owner Whitbread warned profits will be flat next year amid market “uncertainty”. The FTSE 100 firm expects underlying pre-tax profits in the year to February 2020 to “be consistent with” the £444 million analysts have pencilled in for the current financial year, which ends next month. Shares in Whitbread fell 85p, or 1.8%, to 4688p.
Shares of the FTSE 100 company fell in morning trading as investors shrugged off a 2.4 percent increase in quarterly sales and focussed on the cautious outlook. The owner of the Premier Inn chain said it expected annual results to be in line with expectations in the current financial year that runs until around the start of March but added that there would be no progress in underlying profit before tax in 2019-20. Whitbread this month completed the sale of Costa to Coca-Cola Co (KO.N) for 3.9 billion pounds.
Investors in British stocks turned their focus from political to company developments on Thursday as results from software firm Sage, Primark owner ABF, and bookmaker GVC triggered big moves and weak house ...
BRUSSELS (Reuters) - The European Commission said on Thursday it had cleared the sale of the Costa Coffee chain to U.S. drinks maker Coca-Cola Co (KO.N) from British restaurant and hotel owner Whitbread ...