UK-based hospitality group Whitbread said its growth plan will result in the reduction of around 1,500 roles out of a total UK workforce of 37,000.
The company said the plan will optimize its food and beverage offer through converting 112 and exiting 126 branded restaurants.
The group plans to unlock 3,500 new room extensions that will see it reach at least 97,000 open rooms in the UK by fiscal 2029.
Whitbread said the plan will drive increased margins and returns for its UK business.
The company noted that the one-off impact of a £20 million to £25 million ($25.1 million to $31.4 million) reduction to UK adjusted profit before tax in fiscal 2025 will be fully recovered in fiscal 2026.
Dominic Paul, the group's chief executive, said: "The short-term impact on our profit performance this year will be more than offset by an uplift from fiscal 2027 with further increases thereafter in both margins and returns as we open more of the new extensions."