DAVY VIEW

Whitbread’s (WTB) Q1 trading was softer than expected with like-for-like (LFL) RevPAR down 6.0%. While we remain positive on the medium to longer-term structural opportunities for WTB in both the UK and Germany, near-term trading pressures look set to remain. Due to this, we expect estimates to be further dampened post today’s update, with our pre-IFRS 16 PBT in FY20 to fall to £400-415m – a circa 6-9% cut. WTB’s share price should, however, remain supported with its planned tender offer of £2bn.