Whitbread, the FTSE 100 owner of the Premier Inn hotel chain, is facing renewed pressure from activist investor Corvex Management, which is urging the company to launch a full sale process after rejecting calls to significantly reshape its strategy, according top a report by the Financial Times.

Corvex, which holds around a 7% stake and ranks among Whitbread’s largest shareholders, argues that the company’s current approach has failed to halt a prolonged decline in its share price and believes a sale represents the most effective way to unlock value.

In a letter to the board, Corvex managing partner Keith Meister said the company should immediately appoint an independent investment bank and begin a comprehensive review of strategic alternatives, including a potential sale of the entire business. The fund also warned it could seek to replace board members if management refuses to engage with the proposal.

Whitbread’s shares rose modestly following the report but remain significantly weaker over the past year, underperforming broader UK equities and recently hitting multi-year lows.

The dispute follows Whitbread’s reaffirmation of its expansion strategy, which includes plans to add 14,000 hotel rooms across the UK and Germany. The company intends to fund growth through monetisation of its freehold property assets, a strategy Corvex opposes.

Whitbread has defended its direction, saying it is focused on delivering long-term shareholder value through its updated five-year plan, which targets stronger returns and substantial free cash flow by the end of the decade. The company said its strategy was developed after a detailed review of available options.

Corvex, however, has criticised the plan, arguing that the market is significantly undervaluing Whitbread’s property portfolio and assigning little value to parts of its international and development pipeline. The hedge fund has also called for a pause on non-essential spending and any sale-leaseback transactions during a potential strategic review, alongside share buybacks to return capital to investors.