Whitbread has said that it will deliver £60m in accelerated cost efficiencies in the 2027 financial year, after being "extremely disappointed" with the outcome of the Autumn Budget.

The hospitality firm, which owns the Premier Inn brand, said that the recent Government announcement included a number of changes that are set to impact its future financial performance.

This includes significant increases in the rateable values for many hotels, prompting a rise in business rates.

Whitbread stated that while it finalises precise details, it has estimated that its business rates will be hit by between £40m and £50m in the next financial year.

As a result, it has set aside £60m in cost savings to combat this increase and an estimated rise in inflation.

The firm stated that in Q3, its UK division has seen a return to market growth, and it is continuing to trade well. In Germany, market demand has stepped up quarter-on-quarter, which has been supported by a strong events calendar, leading it to outperform the market.

Although Whitbread reiterated its current guidance for the full financial year, it saw its share price fall by almost 10% following the announcement.

Chief executive at Whitbread, Dominic Paul, said: "We are extremely disappointed with the outcome of this week's UK Budget which will have a significant impact on our business and the wider hospitality industry.

"However, we have a strong track record of responding to inflationary headwinds by adapting our business and over time, we are well placed to mitigate their impact through careful management of our cost base and the delivery of significant cost efficiencies.

"To help mitigate the estimated impact of these changes, we will deliver accelerated cost efficiencies of £60m in FY27. Over the coming weeks and months, we will be exploring a variety of options in order to further drive profits, margins and returns."

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