The owner of Premier Inn, Whitbread, has reported a 13% growth in its statutory revenue for the last financial year, driven by strong growth in its UK hotels business.

Whitbread’s revenue climbed to £2.77bn in the period covering the 12 months to the end of February (FY24), which was up from £2.63bn in FY23.

The hospitality group saw its adjusted profit before tax increase by 36% to £561m, up from £413m in the previous year, while its statutory profit before tax was £452m, up from £375m.

Whitbread’s board has now recommended a 26% increase to its final dividend per share to 62.9 pence and also revealed plans to commence a further £150m share buyback, to be completed in the first half of its FY25.

The total amount of cash returned to shareholders via dividends and share buybacks in FY24 saw a significant rise to £756m, up from £119m in the group’s previous financial year.

Whitbread chief executive, Dominic Paul, commented that the group had delivered an “outstanding set of results” in FY24, led by the strength of its UK hotels business.

“Our increased levels of profitability, operating cashflow and return on capital reflect the power of our unique operating model,” Paul said.

“Our freehold-backed balance sheet, together with our strategy of continuing to invest, is allowing us to take advantage of the significant structural growth opportunity that exists following the decline in UK hotel supply.

“Against this backdrop, we are increasing our momentum to deliver long-term profitable growth.”

However, as part of a new growth plan, Whitbread also revealed it is set to cut around 1,500 UK jobs in favour of building more hotel rooms, and slashing its chain of branded restaurants by more than 200.

The group, which has a total UK workforce of 37,000, indicated that these plans remain “subject to consultation”.

Paul added: “Our scale and vertically integrated model mean we have the commercial and operational levers to underpin long-term profitable growth, strong cashflow and increasing returns on capital.

“We are on course to deliver a step change in our performance and look forward with confidence, as reflected by our increased recommended final dividend and proposed further share buyback.”

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