The FTSE-100 company has been on a selling spree as it tries to minimise the impact of the business rate changes in the Budget

Whitbread is set to sell the freehold rights to a portfolio of its Premier Inn hotels in a £1.5bn deal as it shifts towards a capital-light business model aimed at winning back wary investors.

The FTSE-100 company said the measures, forming part of its new five-year plan, were taken in response to the “unexpected” impact of business rates, after the Budget sent tax bills rocketing for thousands of hospitality firms.

The hotel disposal will be accompanied by a sweeping overhaul of the company’s restaurant operations, which will see it offload more than 100 sites and axe nearly 4,000 jobs.

Whitbread has ramped up cost-cutting in recent months as it looks to limit the damage from business rate changes introduced at last year’s Budget.

Chief executive Dominic Paul said on Thursday: “In light of significant cost increases in the form of business rates and National Insurance, as well as the implied market discount to our inherent value, we’ve looked hard at the options open to us.”

Whitbread’s revised strategy will also see it slash capital expenditure by £1bn, with the aim of making £2bn of cash flow available to shareholders by 2031, as reported by City AM.

The company recorded flat revenue in the year to February 2026, at £2.9bn, while pre-tax profit dropped by 19 per cent to £298m.

Premier Inn posted 1.9 per cent growth in accommodation sales, however the group’s food and drink operations saw revenues decline by four per cent.

As part of its business review findings, Whitbread confirmed it has already agreed the sale of 51 restaurants for £50m, with a further 60 sites set to be offloaded. The cost-cutting plan, subject to employee consultation, will result in approximately 3,800 job losses.

The group anticipates its food and drink sales could fall by as much as £160m next year as it intends only to operate restaurants which are integrated with its hotels.

Whitbread said it will take a £5m hit from the impact of the war in the Middle East on its hotels in the region.

The group said soaring energy prices caused by the Iran war could “feed into sustained inflation in goods, utilities and transport-related inputs that materially affect the hospitality sector”.

The company said it is “closely” monitoring the safety of its staff in the Middle East.

The firm was widely anticipated to confirm the freehold sale, as it seeks to woo investors back by offloading assets.

Sell and leaseback is a method by which firms can secure a short-term cash injection, by relinquishing ownership of their property but agreeing to lease the premises.

While this approach offers a quick cash boost, it can leave companies more vulnerable to economic headwinds if they face rent increases.

Whitbread announced a previous five-year plan in October 2024, but opted to undergo a fresh business review in response to “higher than expected cost inflation and significant increases to business rates”.

The Premier Inn owner has been highly critical of the tax burden facing hospitality, stating last year it was “extremely disappointed” by the Treasury’s changes to business rates.

The government later offered a £300m business rates support package to pubs, but excluded hotels and restaurants from relief from the higher rates, which came into force this month.

Whitbread began life as a brewery in the 18th century and has been listed in London since 1948. The firm’s shares closed at 2,383 on Wednesday, down six per cent in the year so far.

The group said its market value is at a “significant discount to the inherent value of our business”.

BAYOU LA BATRE, Alabama — Many American shrimpers are keeping their shrimp boats docked with an empty tank ahead of shrimping season as high fuel prices and tariff refunds hit the industry with a “double whammy.”

Rising diesel costs — driven in part by geopolitical tensions affecting global oil supply — are squeezing margins for shrimpers who rely heavily on fuel to operate. At the same time, a dispute over tariff refunds is adding financial pressure across the industry.

Some shrimp boat owners in Bayou La Batre, Alabama, like Joseph Rodriguez, are watching for developments in the Middle East as the Strait of Hormuz remains effectively closed as conflict continues in the region. Before the conflict, about 20% of the world’s oil supply passed though the Strait. 

“We definitely depend on the price of fuel, which we can’t control at all,” Rodriguez said. 

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Some American shrimping crews are making repairs to their boats while they wait for gas prices to come down. (FOX News / Fox News)

Iranian officials said Monday they would consider reopening the strait if the U.S. lifts its naval blockade and ends the conflict. The Trump administration rejected the proposal, citing Iran’s refusal to halt its nuclear program.

“It’s going to make it more difficult to make any kind of profit at all,” Rodriguez said. 

Some shrimping crews are using the downtime to repair vessels while waiting for fuel prices to ease.

Meanwhile, fuel prices in the United States continue to soar. AAA reported a gallon of diesel fuel cost an average of $5.46 on Tuesday, about $2 higher than a year earlier.

Rodriguez built the “Little Andrew,” a shrimp boat capable of holding 27,000 gallons of diesel fuel, in 2001. He said the vessel recently burned through about 12,000 gallons during a 37-day trip.

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The Southern Shrimp Alliance said fuel costs “routinely account for more than 50%” of shrimpers’ total operating expenses, warning that elevated prices could limit access to sustainable shrimp stocks off the U.S. coast.

Rodriguez, like several other shrimpers along the Gulf Coast, said he supports U.S. strikes in Iran and expects fuel prices to eventually fall if the Strait of Hormuz reopens.

“We’ll surf along with it for a little bit because it’s got to be done,” Rodriguez said. “I believe fuel prices will come back down to a more manageable for us in the very near future.”

Shrimp crews take their boats out for weeks at a time, usually burning through about 12,000 gallons of diesel fuel.  (FOX News / Fox News)

In addition to fuel costs, shrimpers are raising concerns about tariff refunds following a recent Supreme Court ruling.

In February, the U.S. Supreme Court ruled President Trump’s tariffs on U.S. importers were unlawful. The SSA said the U.S. made $902.7 million in tariff revenue on imported shrimp. The U.S. government is refunding it to foreign companies even though American shrimpers want that money to go back to domestic shrimpers. 

Industry groups argue the refunds disproportionately benefit foreign suppliers rather than domestic producers. Nearly $450 million of the refund money is expected to go to India alone, according to the SSA.

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“They ought to put it in some kind of fund to help domestic shrimpers in some sort of way,” Rodriguez said. “We’re in competition with the government of China, for God’s sake, a communist country. We’re in competition with them with their shrimp imports.”

American shrimpers say high fuel prices and tariff refunds are a ‘double whammy.’ (FOX News / Fox News)

Rodriguez urged consumers to buy American shrimp instead of imported products, calling it the industry’s “greatest hope.” He also claimed imported shrimp carry a higher risk of contamination from pathogens or veterinary drugs used during production.

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“You’d be surprised at some of the high-end restaurants that serve you shrimp, that got more frequent flier miles than I got,” Rodriguez said. 

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The Great North Investment Summit is happening a day before the UKREiiF event in Leeds next month

Northern mayors, business leaders and senior Ministers have been lined up to lead an event designed to bring more jobs and prosperity to the region. The Great North Investment Summit – which has been inspired by the spirit and success of the Great North Run – will take place in Leeds next month.

The initiative will come a day before the UK’s Real Estate Investment and Infrastructure Forum (UKREiiF) event, a leading real estate conference that brings investors from around the UK to the North of England. The investment summit has been organised by Northern mayors led by the North East’s Kim McGuinness, in collaboration with the Government’s Department for Business and Trade and the Office for Investment.

It is hoped that the event could attract investors to a number of Northern development schemes, unlocking billions for the local economy. Details for the summit have now been announced, with seven Northern mayors including Ms McGuinness, Tracy Brabin from West Yorkshire and Greater Manchester’s Andy Burnham listed to speak.

Also on the schedule are the leaders of the CBI and the British Chambers of Commerce, and senior figures from big businesses including Siemens, Aviva and NatWest. Tom Riordan, the Government’s Northern Growth Envoy, Prof Juergen Maier, chair of Great British Energy and Oliver Holbourn, CEO of the National Wealth Fund are also speaking.

Ms McGuinness said: “We are seizing control of the North’s economic destiny, ending the days where our regions are overlooked. By establishing the Great North Investment Summit, we are creating the first ever forum dedicated to promoting the North of England collectively, demonstrating our unrivalled investment potential, and telling our story on the global stage with passion and pride.”

Events at the summit include discussions on the North’s record on innovation, how identity fuels Northern growth and the Government’s Northern growth strategy. The event will take place in Leeds on May 18, a day ahead of the UKREiiF, an event that attracts investors from around the world.

It will feature “pipeline-ready investment opportunities” in the North’s growth sectors, with organisers saying that it has the potential to add more than £100bn to the UK economy. The event comes as Chancellor Rachel Reeves has identified the North as one of the main areas where the Government hopes it can boost economic growth.

As well as backing plans for Northern Powerhouse Rail the Government last month £2.3bn for “city investment funds” in the North and the West Midlands to accelerate schemes that will bring economic growth.