Whitbread Share Discussion Threads

[philanderer] 08/8/2021 11:19

bountyhunter, I see Adam Crozier who bought those shares is tipped as being the new chairman of BT.

[bountyhunter] 05/8/2021 16:48

Another director buy

6,430

- Price GBP31.11

Total GBP200,037.30 !

Date 2 Aug

Added to header

[dartboard1] 05/8/2021 13:40

I live in a very non-tourist area. I drive past two P. Inns every morning. The car parks are more than half full mon-fri. I bought this for the staycation boom, but think that business travel (blue collar) is rebounding a lot faster than people are expecting. Looking forward to the next update.Anecdotal evidence is not ideal for investment analysis... but it's interesting ...

[netcurtains] 05/8/2021 13:07

Get those dirty burgers on the grill

[redoctober5] 05/8/2021 12:37

Cooking on gas now.

[commuter10] 29/7/2021 10:14

Yes Net a Definite Bonus!

[netcurtains] 29/7/2021 08:21

Premier Inn should be good now the international travel lockdown to EU and USA is easing.

[commuter10] 22/7/2021 15:53

It looks Great but 8 years to completion seems a trifle long to me. Obviously extenuating circumstances like council planning permission etc:

[philanderer] 22/7/2021 00:51

Hotel chain Premier Inn is about to open its new Oxford city centre hotel opposite the Westgate Centre.

Whitbread, which owns the Premier Inn hotel chain, started working on plans for the hotel in 2013 following the acquisition of a 1980s office building which originally occupied the site.

The redevelopment provided the opportunity to improve Paradise Square, a public space next to the hotel, and 27 new jobs have been created.

[bountyhunter] 20/7/2021 17:20

Agreed £15 was cheap but good that the rights offer benefitted existing holders who stumped up the cash at a very uncertain time in the pandemic (I wasn't one then).
The Director's purchases since that time at much higher prices (top of header) do give me confidence that they believe Premier Inn is well positioned to benefit from the recovery.

[m_kerr] 20/7/2021 17:04

market cap pre covid £7.2bn plus £2.7bn net debt (including lease liabilities) = £9.9bn enterprise value. now it's an enterprise value of £9bn, so it's a drop of 9%. so it looks like peel hunt did their maths correctly on overall valuation.

but remember that in effect a big chunk of the company was sold for £15 a share, representing a significant and permanent reduction in intrinsic value per share. the rights issue was a shockingly poor capital allocation decision. they had a strong financial position and should have used the covid financing facility (or bank debt - either unsecured or secured against their property), then there would be no dilution.

[bountyhunter] 19/7/2021 19:50

Fair point but have Peel Hunt not allowed for that? The share price is more than 40% down from pre-covid levels (£50 -> less than £30) so even allowing for the effect of the dilution with additional shares issued 1 for 2 @£15 there has still been a significant drop in the valuation.

[m_kerr] 19/7/2021 17:33

BH - remember you need to divide that enterprise value over 200m shares instead of 133m, due to the rights issue at a very dilutive share price of £15. net assets per share were £28 pre covid. now book value per share is £19.20 a share.

[bountyhunter] 16/7/2021 17:26

A possible takeover target is one reason I bought back in here..

"With the EV having fallen to circa 11% below pre-Covid-19 levels and with undervalued, asset-rich, UK-listed companies being picked off by acquirers we upgrade our recommendation."

www.sharecast.com/amp/news/broker-recommendations/peel-hunt-ups-whitbread-to-buy-says-shares-oversold--8038336.html

[ghhghh] 16/7/2021 08:00

Peel Hunt upgrade to Buy from Add

3,600p PT

Top dog - oversold after reopening fears

[essentialinvestor] 15/7/2021 11:53

ghh, 22 years on ADVFN, bloody hell!.

[ghhghh] 15/7/2021 10:16

You can't compare Wales with England since greater high population density hot spots.

The question for us 'recovery stock' investors is what happens next?

For the vaccinated world we are the canary in the coalmine. How bad will it get?

For us, whatever happens we are going to be over the worst in 4 to 6 weeks. This is when the boffins say infections will peak. ie we have achieved the Holy Grail of Herd Immunity.

Life in the UK should then return to near normal although the vulnerables must wait for boosters. Whitbread is therefore the safest of the recovery stocks and should benefit from increasing business travel plus staycations. Germany won't be far behind re vaccinations.

[essentialinvestor] 15/7/2021 09:05

dart, yes fair point. If I had a better idea on the white collar
business market as a % of Premier Inn revenue then would be more confident in making an assessment. I've put WTB on a watchlist in any case. Luck to holders.

[dartboard1] 15/7/2021 09:02

Remember a good portion of premier inn b2b is blue collar, who can't often do work via zoom... but yes a portion of b2b will stay low for next 2 years

[essentialinvestor] 15/7/2021 08:59

Mentioned B2B as would expect the regional business market to recover
very slowly and with the adoption of Zoom and different ways of working,
wonder if we have seen a secular shift?.

Can certainly see the attraction of B2C for Premier Inn, staycations, strong brand
value proposition etc.

If anyone has any thoughts on this would be interested to hear.

[bountyhunter] 15/7/2021 08:05

Could be but I'd prefer to have a booster jab :) Drakeford made some mistakes early on but Wales now has less infections per capita than other nations in the UK and as with Sturgeon Drakeford is keeping the law unchanged re facemasks thereby avoiding confusion and minimising transmission risks.

[ghhghh] 15/7/2021 07:47

Drakeford locked down early (September) and it didn't work thanks to poor compliance. Sadly people needed to see escalating daily deaths before they recognise the need.

To be contentious, I think the Govt has not done too badly overall when factoring in population density, international travel hub, our national mindset (it's only flu!) and especially obesity/diabetes (lousy diet).

The good news (versus say Australia) is that we have had wave 1 (least infectious), wave 2(more infectious Kent) and now wave 3 (highly infectious Delta).

Australia now coping with highly Delta but has no immunity. And vaccines can only go so far... You can run but you can't hide. Also Covid is mutating to become more infectious and possibly more virulent if it's to beat the vaccines.

There is an argument that those of us who are double vaccinated should hope to get Covid in order to build up immunity for next variant. Obvious the vulnerable should wait for booster. Is this Govt policy?

[dartboard1] 14/7/2021 23:28

That's a good question, I've never seen it reported. But probably very important this year and next...

[bountyhunter] 14/7/2021 21:48

If Sturgeon and Drakeford can hold back on relaxing facemask regulations too soon while rates are rising exponentially once again then Boris could have done so as well. He'll probably have to do a U-turn in the end when infections get to 100k/day and the NHS can't cope but how many hospitalisations & deaths/day does he think is acceptable and how many lives will this cost?

[essentialinvestor] 14/7/2021 21:38

Could one of you knowledgeable posters perhaps clarify this..
what % of UK Premier Inn revenue is B2B ?.

From presentations the only mention I see
is a 50/50 split on consumer v business booking on their Hub rooms -
that was from 2019.