Yahoo Finance Whitbread notches up hike in Premier Inn bookings
Premier Inn owner Whitbread has notched up a hike in sales amid strong demand for budget hotel stays and a rebound from 2021’s Covid-hit Christmas.
The group said UK like-for-like accommodation sales rose 20.6% year-on-year in the 13 weeks to December 1, or 23.8% higher on a total basis.
It cheered a strong performance across both London and in the regions as it said its budget offering at Premier Inn appealed to customers during the cost-of-living crisis.
The group has also been boosted after last year’s result was held back by the Omicron variant of Covid, with many people putting off travelling over the 2021 festive season due to the pandemic.
Whitbread said trading since December 1 has also been strong, with total hotel accommodation sales up 25% year-on-year and 36% versus two years ago, before the pandemic struck.
But it flagged higher costs, saying it expects net cost inflation of between 7% and 8% in 2023/24 on its UK cost base of around £1.6 billion as it sees pressure on wages and energy bills.
In her last update before handing over the reins next month, outgoing boss Alison Brittain said: “Despite a more challenging period for the UK economy, our winning business model continues to deliver outstanding value and quality for our guests.”
Ms Brittain leaves at the end of February after more than seven years in the role and will be replaced by former Domino’s Pizza chief Dominic Paul.
She was named last summer as the new chairwoman of the Premier League to replace interim chairman Peter McCormick, who leaves in early 2023.
Ms Brittain said: “It has been an enormous privilege to lead Whitbread over the last seven years and I am pleased to be handing over to incoming chief executive Dominic Paul at a time when the business is performing well and when prospects for the future look bright.”
Shares in Whitbread lifted 4% on Thursday.
The group, which also owns bar and restaurant chains, including Beefeater and Table Table, said like-for-like UK food and drink sales rose 6.9% but were 7.6% lower versus pre-pandemic levels.
Total UK food and drink sales were 8.4% higher and 3.7% lower versus two years ago, with growth since December 1 up to 13% year-on-year.
Figures also out on Thursday from All Bar One owner Mitchells & Butlers (M&B) revealed “continued strong trading” over Christmas, despite the recent train strikes, as it benefited from a Christmas without Covid disruption and restrictions.
It reported like-for-like sales jumping 19% higher in the five weeks to January 7, with food sales up 15.8% and drink up 23.4%.
This helped it notch up a 10.4% rise in sales over the 15 weeks to January 7.
M&B boss Phil Urban said: “We are encouraged by a strong performance through the first quarter and delighted to have been able to welcome our guests back over the festive trading season after three years of disruption due to Covid 19, setting sales records as we did so.
“However, we are mindful that the trading environment for the hospitality sector remains very challenging with inflationary costs putting sustained pressure both on the industry’s margins and disposable income of our guests.”
