Premier Inn owner Whitbread has said forward bookings are stronger than last year, driven by positive leisure demand. The group reported total sales increased by 2% to £727 million for the 13 weeks to May 28, compared with the same period a year earlier.
Chief executive Dominic Paul said trading “improved” over the latest quarter despite pressure on consumer finances. Positive trading across Premier Inn in the UK and Germany was partially offset by a slump in food and drink sales caused by the closure of restaurants.
Growth Strategy and Restaurant Closures
Whitbread is pushing forward with a five-year growth plan that has seen it shift away from the group’s branded restaurants. In April, the company announced it would shut its remaining Beefeater and Brewers Fayre restaurants as part of a restructuring affecting around 3,800 jobs. Bosses said the firm is “executing each element” of the growth strategy “at pace” to focus on its hotel operations.
UK Performance
Premier Inn UK saw accommodation sales increase by 3%, with total revenue per available room (RevPAR) rising by 2% year-on-year. This benefited from a “strong” performance in London, where sales were 7% higher.
Mr Paul commented: “We delivered a strong and improved performance in the first quarter. In the UK, driven by the strength of our brand and commercial programme, total accommodation sales and RevPAR continued to grow ahead of the wider market. Strong leisure bookings mean that our forward booked position is ahead of last year and we remain confident in the full-year outlook.”
Shares in the company were 1.5% lower in early trading.
