UK hospitality firm Whitbread said that it has raised £1 bn (€1.1 bn) through a rights issue with an acceptance rate of over 91%
The move demonstrates ‘the high level of confidence’ in the firm’s strategy from both its institutional and retail shareholders, according to CEO Alison Brittain. ‘Our strong balance sheet has for many years been a source of competitive advantage and has underpinned our long-term success. This equity raise enables us to maintain this competitive advantage and retains our financial flexibility.’
The company plans to use the proceeds to take advantage of ‘enhanced structural opportunities’ that it expects to become available in both the UK and Germany.
Brittain said: ‘This will mean that we are in a position of strength to continue to invest, increase market share, support our colleagues and guests and create significant value for shareholders.’
The firm, which manages the Premier Inn hotel brand, has all its 18 hotels open in Germany and 49 open hotels in the UK.
