Shares in Whitbread PLC saw notable interest after independent research houses Shore Capital and Peel Hunt published positive notes reflecting stronger-than-expected hotel trading trends. Shore Capital revised its projected full-year EBITDA growth to 12%, up from 9% previously, while Peel Hunt lifted its revenue growth estimate for the budget hotel division by 2 percentage points. Both firms highlighted management’s execution of its pipeline expansion plan, including the on-track development of 25 new properties slated to open by mid-2027.

In its Q3 2026 sales and trading call, Whitbread reported group-wide sales up 8% year-on-year, driven by a 10% uplift in UK hotel room revenue per available room (RevPAR). Occupancy rates climbed to an average of 75% during the three months, compared with 68% in the same period last year. The Costa Coffee chain also contributed, with like-for-like store sales rising 5%. Management noted accelerated growth in regional markets outside London, where RevPAR improvement exceeded 12%.

Chief Financial Officer Helen Martin emphasized that input cost inflation moderated to 3% in Q3 from 5% in H1, thanks to favorable contract renewals and a hedging program on energy. As a result, the group now forecasts full-year underlying operating margins to expand by 50 basis points, versus a prior guidance of flat margins. The company reiterated its target of opening 50 net new Premier Inn hotels over the next two years, while targeting an incremental return on capital of 15% at new sites.