18th Dec 2025 10:15
(Alliance News) - Corvex Management LP on Thursday said it has taken a more than 6% stake in Whitbread PLC, saying the UK hospitality firm trades at a discount not only to its "fundamental value" but at a discount to the value of its UK freehold hotel portfolio alone.
Corvex urged Whitbread to commission a third-party strategic review of its capital allocation priorities.
Whitbread shares were up 6.3% to 2,600.00 pence early Thursday in London. The stock remains down 11% over the past 12 months. The FTSE 100 index constituent has a GBP4.39 billion market cap.
Corvex is an alternative asset and investment management firm based in New York. It was founded in 2010 by Chief Investment Officer Keith Meister and its website says Covex engages in fundamental investing "with the ability to become active in situations to create asymmetric risk/reward opportunities".
Whitbread is a Bedfordshire-based hotel and restaurant owner, whose lead business is the Premier Inn chain in the UK and Germany.
"In our view, the current share price appears to ascribe no value to several meaningful components of the company's business," Corvex said, "including its UK operated leasehold portfolio, its German hotel assets, and its development properties currently under construction and not yet trading."
Corvex said it had not "predetermined any particular outcome" to the strategic review. However, it said, "we believe the board of directors should review the company's current five-year capital plan, which contemplates approximately GBP3.5 billion of investment - an amount approaching the company's current market capitalisation."
In response, a Whitbread spokesperson said the company "has a clear strategy and business model, and our five-year plan is designed to deliver strong returns for shareholders through growth in both the UK and Germany."
Referring to the UK government budget announcement last month, which increased business rates for some properties, the spokesperson said: "We run our business for the long-term but remain flexible and as stated in our announcement on November 28, we are exploring various options to further drive profits, margins and returns in light of the impact of measures in the UK budget."
Corvex also referred to the UK budget, saying the changes to rateable values and business rates made a strategic review more necessary.
In a stock exchange filing on Thursday morning, Whitbread said that Corvex owned 9.4 million shares, a 5.5% stake, as of Monday, up from none reported before. In its own announcement on Thursday, Corvex said it now owns 10.2 million shares, a 6.1% stake.
Corvex said it wants to work "constructively and collaboratively" with the Whitbread board and management team. "Ultimately, we believe the company must evaluate all available strategic options with the objective of maximising value for all shareholders," it said.
By Tom Waite, Alliance News editor
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