Whitbread Share Price (WTB)

It was probably due to the US CPI report. It's a high beta stock.

Any ideas why it's dropped over 4% today

Whitbread is set to sell or convert a third of its Beefeater and Brewers Fayre pubs estate after a private equity swoop collapsed.

https://www.thetimes.co.uk/article/whitbread-takes-the-axe-to-beefeaters-and-brewers-fayre-pubs-xqcq33gdn

Jefferies has issued a 'buy' recommendation for Whitbread PLC (LSE:WTB) with a price target of £42, indicating a potential upside of 31% from its current price of £32.12.

This optimistic outlook is grounded on Whitbread's recent performance and prospects, especially considering the Smith Travel Research (STR) data for February, which showed mixed results for the mid-scale hotel market in company's key markets - the UK and Germany.

Despite a slight decline of -0.6% in UK revenue per available room (RevPAR) and a moderate growth to +4.3% in Germany, Jefferies believes these numbers align with the market's expectations and doesn't foresee a change in financial year 2024 estimates.

Whitbread, known for operating hotels primarily under its flagship brand, Premier Inn, is positioned as a beneficiary in the UK's pressured consumer environment, the American investment bank said.

The company's value proposition, coupled with the accelerated decline of independent competitors since 2019, positions Whitbread favourably in taking market share, Jefferies added.

This scenario is bolstered by the industry-leading yield management practices of Whitbread, creating a promising environment for the company.

Whitbread shares, down 12% in the year to date, were flat mid-afternoon Tuesday at 3,193p.

Shore Capital Markets has maintained a generally positive outlook on Premier Inn parent Whitbread PLC (LSE:WTB) despite recent underperformance and projections of a downturn in RevPAR (Revenue Per Available Room).

Analysts said Whitbread's financial forecasts suggest a trajectory of growth, with anticipated improvements in revenue, EBITDA, and adjusted profit before tax over the next few years.

“We maintain our BUY stance on Whitbread with the forthcoming preliminary results at the end of April set to provide greater clarity of the trading backdrop,” said Shore Cap.

European operations are also continuing to build.

Shore Cap said: “In Germany, we expect Whitbread to meet its milestone of reaching run-rate profitability in the current calendar year although it is arguably the return metrics on its maturing portfolio of hotels which is key"​.

Whitbread shares are currently down 12.3% year to date at 3,168p.

A current valuation ratio of 12 times net forward income suggests the market is now starting to price in a 5% fall in UK like-for-like RevPAR, said ShoreCap analysts.

“This continues to feel too low, given attractive returns (ROI of 15%), significant freehold backing and market leading position.”