Cheap room rates get budget travellers through Premier Inn’s doors, but will the extension of that trait to shares in Whitbread, the hotel chain’s parent, bring bidders to the check-in desk?
The numbers suggest that might be the case. An enterprise value of 12 times forecast adjusted profit before tax and other charges is below a post-Brexit referendum average multiple of 15; and the 17 per cent slide in Whitbread’s shares over the past year could tempt potential suitors.
There is some justification for the market’s reticence. Bookings of 40 per cent of available rooms for the second quarter give grounds for confidence in strong half-year numbers, but beyond that there is little visibility over future revenue. True, an even split between leisure and
