Whitbread posts strong rise in Premier Inn sales; Holds guidance

(Sharecast News) - Pubs and Premier Inn owner Whitbread maintained full-year guidance after a strong rise in accommodation sales during the third quarter, with momentum continuing into the fin al three months of the financial year. The company said accommodation revenues rose 13% year on year, driven by a 47% jump in German sales. Food & beverage operations were up 7%.

Strong trading continued into the fourth quarter with UK accommodation sales 12% ahead of fiscal 2023 with revenue per available room (RevPAR) - - a key industry metric - up 10% versus and 39% ahead of pre-Covid pandemic 2020.

Third-quarter RevPAR increased 9% in the UK with high occupancy and strong pricing.

Whitbread said it expected net UK cost inflation between 3% and 4% on its £1.7bn - £1.8bn cost base, including operational efficiencies of between £40m and £50m

"With a positive forward booked position in the UK, a favourable supply environment, a clear commercial plan and cost efficiencies, we remain confident in the FY25 outlook," it added.

"In Germany, we remain on-track to break-even on a run-rate basis during calendar year 2024."

"In the UK, we continued to see robust demand for our hotels driving high levels of occupancy and strong pricing. Our focus on delivering a high quality proposition at a great price meant that Premier Inn UK has continued to outperform the M&E market."

Reporting by Frank Prenesti for Sharecast.com