Whitbread is to sell £1.5bn of its property estate including numerous Premier Inn hotels in order to cushion the “unexpected” impact of business rates.

More than 100 of the hospitality operator’s UK sites are expected to be brought to market this year, jeopardising nearly 4,000 jobs across its restaurants, bars and hotels.

“In light of significant cost increases in the form of business rates and national insurance, as well as the implied market discount to our inherent value, we’ve looked hard at the options open to us,” said CEO Dominic Paul.

“We will recycle £1.5bn of our freehold property to fund new growth and will increasingly look to grow on a leasehold basis, resulting in net capex of £200m to £250m per year, equating to a reduction of more than £1bn versus the previous five-year plan.”

While Whitbread will continue to benefit from owning a substantial amount of freehold real estate, it expects to reduce the proportion held from approximately 50 percent to between 30 and 40 percent “over time.”

“By maintaining a lower, but still significant level of freehold, the group can continue to benefit from the advantages outlined above, while also remaining investment grade.”