Premier Inn owner Whitbread reports dwindling sales as Brexit uncertainty continues
Premier Inn owner Whitbread reported dwindling accommodation sales in the first quarter due to ongoing Brexit uncertainty.
The company, which has focused on its hotel business since selling Costa Coffee to Coca-Cola last year, said UK like-for-like accommodation sales growth fell 4.6 per cent.
Read more: Premier Inn owner Whitbread warns over “acute political uncertainty”
Total like-for-like revenue per available room in the UK fell six per cent in the quarter due to “weaker business and leisure confidence”.
However, in a trading update this morning the hospitality firm said its German expansion plans were on track.
Its first German hotel in Frankfurt has seen occupancy levels of around 70 per cent and the group plans to add 2,000 extra rooms in the country.
Meanwhile, its new hotel in Hamburg is “performing well ahead of expectations”.
Whitbread chief executive Alison Brittain said: “We have delivered a resilient performance in the first quarter despite more challenging market conditions and we continue to make good progress with our efficiency programme, which is helping to partially offset another year of high industry cost inflation.”
Alistair Douglas, investment manager at Brewin Dolphin, said: “It’s been a tough start to the year for Whitbread, with a decline in sales across its UK operations.
Read more: Whitbread announces £2bn share buyback after Costa Coffee sale
“A large part of this can be put down to the uncertain wider economic landscape, with Brexit appearing to take its toll on business and leisure confidence – particularly in regional business markets.
He added: “Following the sale of Costa, Whitbread is quite a different business; so the board will have to continue to drive efficiencies and use its strong balance sheet to reinforce its growth strategy – a difficult task in this uncertain political and economic environment.”