Whitbread PLC, the UK-based hospitality giant and owner of Premier Inn, is making significant progress in its share buy-back program, announced as part of its broader financial strategy to return surplus capital to shareholders and optimize its capital structure.
On May 1, 2025, the company launched a £250 million share repurchase initiative, set to run until April 30, 2026, with the aim of enhancing earnings per share by reducing the number of outstanding shares.
As of the latest updates, Whitbread has actively executed this program, purchasing a total of 973,787 shares since the program’s inception at a cost of £27,449,564.57 (excluding dealing and associated costs) by June 12, 2025. This includes transactions on June 10 and 11, 2025, with shares bought at volume-weighted average prices ranging from 2,890.78 to 2,900.92 GBX across multiple trading platforms such as the London Stock Exchange, CHI-X Europe, BATS Europe, and Aquis Stock Exchange .
The company intends to cancel these repurchased shares, a move that has already reduced its total issued shares to 187,994,789 (excluding 12,454,718 held in treasury), adjusting the total voting rights to 175,540,071 5.
This buy-back program, managed by Morgan Stanley & Co. International Plc under a non-discretionary and irrevocable agreement, operates within the shareholder authority granted at the 2024 Annual General Meeting, allowing for the repurchase of up to 13,250,263 shares before the 2025 AGM on June 19, 2025. Continuation beyond this date will depend on renewed shareholder approval.
Whitbread’s commitment to returning value is further evidenced by its plan to return over £2 billion to investors through a combination of buy-backs and dividends, supported by strong operating cash flow .
The strategic repurchase comes amid a challenging fiscal year 2025, where Whitbread reported a 1% revenue decline to £2.92 billion and a 14% drop in adjusted pre-tax profit to £483 million. Despite these headwinds, the company outperformed the UK mid-scale and economy hotel market, with flat accommodation sales and promising growth in Germany, where it aims to achieve profitability in 2025.
With shares gaining nearly 4% to £26.81 following the initial buy-back announcement and a consensus analyst price target of 3,406.88 pence (indicating a 17% upside), Whitbread’s strategy signals confidence in its long-term outlook and commitment to shareholder value.
