Premier Inn-owner Whitbread shares rise after robust third quarter
Premier Inn owner Whitbread saw sales grow 22.9 per cent in the third quarter as Brits turn to budget accommodation options amid looming recession and cost-of-living concerns.
The hotel operator reported an increase in demand for sales with accommodation 37 per cent above pre-pandemic levels in the UK and 770 per cent in Germany. Total accommodation sales for the company were up 45 per cent on pre-pandemic levels.
Whitbread boss Alison Brittain said: “The strength of our forward booked position, robust pricing, estate growth and efficiency programme all underpin our confidence in the outlook for full year of 2024.”
“Despite a more challenging period for the UK economy, our winning business model continues to deliver outstanding value and quality for our guests,” Brittain said.
The strong result for Whitbread pushed it among one of the highest risers in the FTSE 100 on Thursday, with shares up around four per cent this morning.
The company also forecast a seven to eight per cent rise in net cost inflation on its £1.6bn pounds UK cost base next year.
Brittain is soon to hand over to new boss Dominic Paul.