Page 1

WHITBREAD Q3 FY21 Trading Update 14 January 2021 Market share gains in the UK and expanding estate in Germany despite challenging market conditions Q3 summary ( 13 weeks to 26 November 2020 ) • • • • • • • Government COVID - 19 restrictions continued to create very challenging hotel market conditions As a result , total UK accommodation sales were down 55.2 % with occupancy at 49.3 % Despite this , a resilient operational performance resulted in : о the vast majority of our hotels remaining open during the quarter Premier Inn UK's total accommodation sales performance being 8.9pp ahead of the M & E market1 with total market share growth of 4.1pp to 11.4 % ² Continued focus on operational excellence , health and safety measures , efficiencies and managing cashflows Accelerated estate growth in Germany , with an open and committed hotel pipeline now at 68 hotels following the successful completion of the acquisition of 13 hotels from the Centro Group Cash outflow for the quarter was in line with previous sensitivity guidance The Group is well positioned to continue its outperformance versus the market and to emerge in a strong position in the long - term Current operational and financial position • • • • Improved demand for business travel , and some leisure travel , resulted in the majority of our UK hotels remaining open during the first half of December , with demand levels falling as the Government's tier restrictions tightened in the second half of December and through into the New Year Following the updated UK Government restrictions announced on 4 January 2021 , that only permit essential business and keyworker accommodation , around two - thirds of our hotels remain open , while all our restaurants are closed With the increased restrictions , total UK accommodation sales were down 66.4 % for the 5 weeks to 31 December 2020 with occupancy at 31.1 % 21 of our 29 operational hotels in Germany remained open but under severe restrictions , and therefore similar to the overall German hotel market , recorded low levels of occupancy . These restrictions have been extended until at least the end of January The Group's balance sheet remains strong with a net cash position at 31 December 2020 of approximately £ 40.0m compared to £ 196.4m at the end of H1 . Capital spend was £ 98.4m in the four months to 31 December 2020. The Group also had cash on deposit of £ 814.9m and access to a £ 900.0m undrawn revolving credit facility , and up to £ 300.0m available under the Government's Covid Corporate Financing Facility ( CCFF ) scheme Comment from Alison Brittain , CEO : " Since the start of the COVID crisis , we have responded quickly and robustly to the changing restrictions and have learnt to rapidly adapt our operations as required . This is testament to the efforts of our colleagues who continue to work tirelessly to maintain our very high operating standards , customer service and high levels of health and safety . This response has enabled us to continue to deliver strong market share gains in the UK , demonstrating the benefits of our strong brand , direct distribution , and our unique operating model . We expect the current travel restrictions in the UK and Germany to remain until at the very least the end of our financial year . With the vaccination programme underway , we look forward to the potential gradual relaxation of restrictions from the Spring , business and leisure confidence returning , and our market recovering over the rest of the year . We are well placed to continue to outperform the increasingly constrained budget branded and independent competitor sets , by leveraging the benefits of our unique operating model . We expect to see increasing opportunities to develop in both the UK and Germany and are pleased to have accelerated our growth in Germany with the recent acquisition of 13 hotels , taking the open and committed pipeline to 68 hotels , a major step on our path to achieving a nation - wide footprint with representation in most major towns and cities .