Secondary Recommendation

Whitbread - Unveils new expansion target for its budget hotels business

June 2013

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Given the belt tightening of recent times one might assume that most retailers have been trapped in a downward spiral but that's not been the case with Whitbread, whose main businesses, Premier Inn budget hotels and Costa Coffee shops, have powered an impressive 139% increase in eps from 63p to 150.5p in the past six years. The key driver has been its larger Premier Inn side, which has benefited from customers' eagerness to trade down to its affordable hotels and it was no surprise that investors reacted to management's new plan to expand its estate from 51,500 to 75,000 rooms by 2018 by bidding up the shares to new highs. Founded in 1750, Whitbread was originally the pre-eminent player in the brewing industry, but in recent times ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

James Fisher- Marine suport services firm targeting aquisitions

Thorntons -Dramatic recovery in fortunes of chocolates retailer

Whitbread - Premier Inn owner has strong new rooms pipeline to cash in on shrinking supply (December 2024)

Whitbread - £1bn rights issue provides strong recovery platform for budget hotels (July 2020)

Whitbread (October 2018)

Whitbread (July 2018)

Whitbread (December 2017)

Whitbread (August 2017)

Whitbread (December 2016)

Whitbread - On track to open 85,000 rooms by 2020 (July 2016)

Whitbread - De-rating may renew call to float fast growing coffee branch (March 2016)

Whitbread - Costa & Premier Inn still going strong (December 2015)

Whitbread - Now targeting 85,000 hotel rooms by 2020 (June 2015)

Whitbread - Shares hit high of £53! (April 2015)

Whitbread - Gain to date: 112% (December 2014)

Whitbread (August 2014)

Whitbread - Broker has price target of 4650p (June 2014)

Whitbread - On track to have 75,000 rooms by 2018 (December 2013)

Whitbread - Launches new hotel concept (August 2013)

Whitbread (February 2013)

Whitbread - Shares have now gained 283p since our recommendation (December 2012)

Whitbread - All divisions going well (October 2012)

Whitbread -Budget hotels and coffee shops drive surge in eps growth (August 2012)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X