Shareholders of FTSE 100 hospitality firm Whitbread, owner of Premier Inn, have rejected a push by activist investor Corvex Asset Management for a board seat. The motion to appoint James Gemmel, a director at Corvex, to Whitbread's board was voted down at a general meeting on Monday, with more than 83 per cent of votes cast against it.
Whitbread hailed the outcome as a "decisive" victory, stating it would now intensify efforts to deliver on its five-year turnaround plan. This plan includes the sale of all its restaurants, such as Beefeater and Brewers Fayre chains, and aims to return £2bn to investors. The company also seeks to raise £1.5bn by selling freehold rights to more of its hotels.
Corvex Asset Management, a significant shareholder, had advocated for Gemmel's appointment to address what it termed the firm's "chronic misallocation of capital." The investment firm had questioned Whitbread's £1.1bn expansion into Germany and called for a review of company spending. Whitbread's chair, Christine Hodgson, thanked shareholders for voting "decisively" with the board and reaffirmed the company's focus on its five-year plan.
Following the result, shares in Whitbread saw a 1.9 per cent decline, reaching 2,774p. However, the stock has gained approximately 19 per cent over the past six months.