Whitbread Share Discussion Threads

[philanderer] 30/4/2019 16:08

"Evident with the latest results is that the loss of Whitbread's diversification blanket, namely selling Costa, has left the business extremely dependent on a single industry. Therefore you should expect the market to now scrutinise every part of its hotel operations rather than just looking at the headline figures for a broader leisure conglomerate," said AJ Bell's Russ Mould.

Alliance News

[essentialinvestor] 30/4/2019 14:50

Occupancy is key in the hotel business, so a booming AirBnB sector
may be worth watching.

I'm not saying it's in any way a game changer, but a few points off occupancy
makes a difference to a company like WTB.

[jeffian] 30/4/2019 14:13

I really, really, HATE share buybacks, especially when described as a 'return of cash' to shareholders. Yes, yes, I understand the principle that reducing shares in issue bumps up NAV and EPS on the remaining shares, but in practice that does not often correlate to an equivalent rise in the share price. If I want to sell some of my shares, I can do so in the market; if I don't, where's my share of the cash being 'returned to shareholders'? In a case like this where a substantial part of the company's assets have been sold for cash, surely the appropriate action is to make a Return of Capital to all shareholders equally then carry out a general share consolidation?

[ygor705] 30/4/2019 13:49

Personally I am not too concerned about AirBnb.....the new Hub concept plus other initiatives in places like Cardiff to offer rooms at as low a price as £19 per night should keep WTB more competitive than many of its peers. Also, the longer BREXIT goes on then the more likely that UK hotel demand is likely to hold up. I am more concerned about the absence of news on the tender offer. To my mind, the Company's Board is in complete conflict with its shareholders on this issue and needs to tread carefully. The downbeat nature of today's announcement makes me wonder if the share price is being deliberately managed downwards for the benefit of the Board.

[essentialinvestor] 30/4/2019 11:31

There is one other aspect, and I've not seen this get any mention -Air BnB.

This is growing like a weed in the UK atm.

[essentialinvestor] 30/4/2019 11:21

A bit of an oversimplification here, but I think as a medium term investment
it boils down to whether WTB will be bid for before the next recession arrives.
There was some caution on the last update, which has been repeated today.

[porsche1945] 30/4/2019 09:55

A company that never fails to dissapoint, poor lacklustre management, the boss ex Lloyds, another terminal investment, these are heading back to 3800 trading range, think I would have sold the indebted hotel chain (uk brexit recession looming) and kept the coffee, Coke not daft. Shareholders get a poor ride with these, as Terry Smith says, ftse 350 filled with dross.

[5oletrader] 30/4/2019 09:09

So...
Let me get this right?!?

They 'had' a cash cow solid high street coffee brand - where demand will be always strong due to our basic human need for liquid + addictive nature towards caffeine.

With the monster proceeds from this sale... They decide to 'just' Buy Back shares... And spend £2.5bn - YES - BILLION on these shares.

I am baffled!!! Good luck with this.

[ygor705] 30/4/2019 08:29

I was anticipating something a bit more positive for shareholders given the amount of cash slopping about here. Seems to me that the sale of Costa was arranged in a way that was more beneficial to an over-controlling management. Why didn't they just demerge it?

[bountyhunter] 30/4/2019 08:16

or even cold Costa coffee

[philanderer] 30/4/2019 08:08

Those results have gone down like a cup of cold sick 😳😳😳

[philanderer] 29/4/2019 17:38

And some selling before those numbers are released.

[philanderer] 29/4/2019 07:31

Results tomorrow

[philanderer] 25/4/2019 21:55

Barclays restates OVERWEIGHT target 5200p cut from 5500p

[zeppo] 18/4/2019 18:12

When is there some cash back from the Costa sale?


Has it been stated?

[philanderer] 15/4/2019 11:26

'Costa sale brings Whitbread job cuts'

Whitbread is expected to cut more than 100 head-office jobs as a result of its sale of Costa Coffee to the Coca-Cola Company for £3.9 billion. The FTSE 100 leisure group, which is returning £2.5 billion of the proceeds to shareholders, is understood to have launched a consultation process involving almost 10% of the employees at its head office in Dunstable, Bedfordshire.

Some are being offered alternative jobs within the business. A source close to Whitbread, which has 35,000 employees, said that the consultation was expected to be concluded this month, although up to ten people had already left the company. None of the executive committee is thought to be affected.

[cellibomb] 12/4/2019 11:25

Completely agree. But in this particular case what would be the exit strategy (if any) in these shares if S&L was to proceed?I guess there would be a short-term benefit from a capital realisation perspective (whether capital distributed to shareholder, reinvested into the business or paying down debts) but then longer-term issues would likely arise as seen with others.I also see Barclays has increased its holding further now too.

[philanderer] 12/4/2019 00:20

Agree with that , steer well clear of S&L.

[jeffian] 11/4/2019 23:57

That's what did for Bass (now M&B - MAB). There's always some Smart Alec looking to 'realise value' from property portfolios, which basically means stripping out all the asset value and leaving the liabilities. As Debenhams and others are discovering, leases are liabilities, not assets.

[cellibomb] 11/4/2019 22:15

Anyone have any views on recent stake building by Och-Ziff (US hedge fund) and Barclays? Each disclosed 5% holdings.I think Barclays previously did some analysis on how much Whitbread would be worth if it sold and leased back its real estate portfolio. Also looking at Och-Ziff, they have experience in real estate too and I know Elliott has been pressuring Whitbread on releasing more value this way.Maybe joining up force on the sale and lease back push (although Debenhams may highlight this isn't a good strategy long term).Be interested in others' opinions

[philanderer] 11/4/2019 10:14

Morgan Stanley downgrading to 'equal-weight'... target cut from 5500p to 5200p

[philanderer] 05/4/2019 23:33

'Le Masurier and Whitbread enter agreement for second Premier Inn hotel in St Helier'

[philanderer] 19/3/2019 09:53

19th mar HSBC 'hold' ........ tp 4900p cut from 5400p

[philanderer] 18/3/2019 13:42

Only had a very small holding before today, but doubled up this morning.