Whitbread’s Premier Inn recovery ‘ahead of expectations’ despite losses
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Premier Inn owner Whitbread has said the budget hotel chain’s recovery in the past six months has been ahead of expectations.
The hotel chain, which was battered by the sudden drop in tourism and overnight stays last year, has enjoyed a strong spike in demand since mid-May, Whitbread said in its interim results for the six months to 26 August.
Whitbread added that total accommodation sales for September jumped 9.7 per cent in comparison with last year, while leisure demand remains positive as the company enters the second half of the financial year.
Premier Inn’s recovery has likely benefited from the UK’s recent uptick in domestic travel, with many still apprehensive about taking the leap overseas after more than a year of pandemic restrictions.
However, Whitbread posted a statutory loss of £37.8m for the period.
The group’s statutory revenue sank nearly 40 per cent in comparison with the first half of 2020, which the group put down to the Covid-19 restrictions at that time, as the UK emerged from its third lockdown.
“Covid-19 restrictions materially impacted the performance of the UK business in the first quarter. Only essential business guests were permitted to stay overnight until 17 May, at which point overnight leisure stays were permitted,” Whitbread explained in its statement this morning.
Whitbread’s hotel’s were also not allowed to open the doors to the restaurants.
CEO Allison Brittain said: “The operating environment during the summer and into autumn has been challenging largely as a result of our very high occupancy levels, market-wide supply chain issues and a tighter labour supply in the hospitality sector. Although we are not immune from these challenges, we are well placed to respond.”