US hedge fund Corvex Management has called for Whitbread to put itself up for sale, citing concerns over the company's performance and share price trajectory.

The activist investor has urged Whitbread's board to review its strategic options as the Premier Inn owner faces operational challenges. Corvex pointed to what it described as a valuation gap affecting the hospitality company.

Whitbread has been grappling with higher operational costs that have impacted its financial performance. The company, which operates the Premier Inn hotel chain, has seen its share price underperform relative to investor expectations.

Corvex Management's intervention represents a significant development for Whitbread as the company works to address its operational challenges. The hedge fund's call for a strategic review comes as the hospitality sector continues to navigate post-pandemic recovery and evolving market conditions.

The activist investor's push for a potential sale adds pressure on Whitbread's leadership to demonstrate improved performance or consider alternative strategic options for the business.