Whitbread reports 'outstanding' Q1 for Premier Inn

Premier Inn has reported "outstanding" Q1 performance with UK accommodation sales up 18% compared to the same period the previous year.

In its quarterly update Whitbread, owner of the hotel group, said it was saw strong demand from both leisure and business guests across London and the regions in the 13 weeks to 1 June 2023.

Revenue per available room and (revpar) was 16% ahead of full-year results for 2023, with food and beverage sales 10% ahead.

Chief executive Dominic Paul said: "In the UK, our market-leading brand and value-led customer proposition is continuing to deliver impressive revenue growth and a healthy revpar premium versus the wider midscale and economy market.

"The structural reduction in hotel supply, coupled with strong consumer demand, is highlighting the strengths of our differentiated business model, as evidenced by our continued strong performance. Our forward-booked position into Q2 underpins our confidence in being able to deliver a strong first-half result."

He continued: "Our business is in great shape and trading well. Given the lack of branded supply growth and permanent decline in the independent sector, I am confident our business model will continue to deliver as we strengthen Premier Inn's position in the UK, unlock our potential in Germany and maximise long-term returns for our shareholders."

The group opened 348 new rooms across the UK and Ireland in Q1 and is on course to open a total of 1,500-2,000 new rooms by full-year 2024, most of which will open in the second half of the year.

Whitbread is reportedly looking to sell 250 of its 440 pubs, which include the Beefeater and Brewers Fayre brands, to focus on its Premier Inn hotel estate.

In today's update it said trading at the value end of the pub restaurant market remained "challenging", but that a number of commercial initiatives introduced in 2023 were having a "positive impact". It added: "We are continuing to explore a variety of options to optimise our F&B offer while maintaining a quality experience for our Premier Inn guests."

The group reported that its £300m share buy-back is on-track, with 3.1 million shares purchased so far at a total cost of £103m.