Whitbread shareholders reject activist investor’s push for board seat

Whitbread shareholders have rejected activist investor Corvex Asset Management’s attempt to secure a board seat for its director, James Gemmel. The hotel group said the result strengthens its position as it presses ahead with a five-year turnaround plan, while Corvex argued that Whitbread’s strategy and capital allocation need a fresh review.

More than 83 per cent of votes opposed Gemmel’s appointment at Monday’s general meeting. Corvex criticised Whitbread’s £1.1bn expansion in Germany; the company’s plan includes selling its Beefeater and Brewers Fayre restaurants, cutting nearly 4,000 jobs and seeking £1.5bn from selling hotel freehold rights. Whitbread operates about 850 Premier Inn hotels in the UK, and its shares fell 1.9 per cent to 2,774p after the vote.