- 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.