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Whitbread well placed for post-pandemic life

The budget hotel operator’s financial strength means the coronavirus crisis has offered an opportunity to accelerate its expansion plans
Whitbread well placed for post-pandemic life
  • Well-capitalised to fund Premier Inn expansion plans as rivals struggle
  • Track record of generating strong returns on invested capital
  • Efficient operations means the company can break even at 55 per cent occupancy
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points
  • Strong balance sheet
  • Structural growth opportunities
  • Rival businesses in distress
  • Competitive advantage build on brand, scale and efficiency
Bear points
  • Covid pain continues
  • Timing and strength of recovery uncertain

Whitbread (WTB) owns the largest and most popular hotel chain in the UK, Premier Inn. It also has a number of restaurant brands, such as Beefeater, operated in or next to its hotels.

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