Whitbread’s nationwide hospitality overhaul will see three establishments in Gwent cease operations, with the Coldra Beefeater in Newport and Brewers Fayre outlets in Ebbw Vale and Abergavenny among those affected.

The five-year transformation programme will see roughly 3,800 positions eliminated as the company pivots toward a hotel-focused enterprise centred on its Premier Inn brand.

The group, which also runs Bar + Block alongside the two restaurant chains earmarked for shutdown, described the move as part of efforts to generate £250 million in cost reductions and restructure its food and beverage operations.

Whitbread plans to substitute its 197 branded restaurants with combined dining facilities situated within or next to its Premier Inn hotels.

Each of the Gwent sites has traditionally served nearby residents, patrons staying at adjacent Premier Inn properties, and families on journeys.

Although precise closure dates remain undisclosed, staff have entered consultation processes, and the company has stated it will explore redeployment options where practicable.

Whitbread’s revised approach partly addresses rising business rates and national insurance contributions.

The company also aims to divest approximately £1.5 billion in freehold hotel properties to fund continued growth and highlight a leasehold business model.

Despite workforce cuts, Paul has affirmed the approach will enable long-term expansion in the hotel sector.

The company aims to grow its British room portfolio from about 86,600 to 96,000 by the 2031 financial year.

The business posted pre-tax profits of £298 million for the period ending February 26, a 19 per cent drop compared to the previous year.

It attributed this decline to cost pressures and underwhelming results from its restaurant brands.

Total revenue remained largely unchanged at £2.9 billion, with United Kingdom sales climbing roughly one per cent.

Whitbread acknowledged that earlier shutdowns and conversions have impacted its food and drink activities.

The company continues emphasising Premier Inn expansion while managing higher costs and interest rates.

The latest round of closures signals a more extensive retreat from standalone restaurant brands in favour of hotel-oriented development.

Further sites across Wales include two Beefeater establishments in Cardiff, along with Beefeater venues in Llantrisant, Port Talbot and Swansea, plus Brewers Fayre locations in Swansea Vale, Aberdare and Llanelli.