Whitbread PLC on Thursday said it will maintain its guidance for the financial year ending March 31 after posting a jump in its quarterly accommodation sales.
For the 13 weeks to November 30, the Dunstable, Bedfordshire-based owner of the Premier Inn chain of hotels said Premier Inn UK sales grew 11% year-on-year, citing ‘strong demand’ in London and the regions.
Total revenue per available room in the UK rose 9% in the third quarter, and was up 39% from financial 2020, due to ‘high occupancy and strong pricing’. UK food and beverage sales also performed well, with sales rising by 6%.
As for Premier Inn Germany, total accommodation sales jumped 47% as a result of continued expansion of the Premier Inn estate, with total RevPAR at €60.
Looking ahead, Whitbread said strong trading has continued into the fourth quarter of its financial year
with UK accommodation sales 12% ahead of financial 2023. Meanwhile, RevPAR is up 10% year-on-year and 39% ahead of financial 2020. UK F&B sales grew 7% from a year ago due to a ‘robust trading performance over the festive period’. As for Germany, total accommodation sales were 61% ahead from the year prior.
The hotel owner added that it remains ‘comfortable’ with its financial 2024 guidance of a pretax loss of between £30 million and £40 million, and that its annual guidance remains unchanged.
As for financial 2024, Whitbread expects net UK cost inflation of between 3% and 4% on its £1.7 billion to £1.8 billion cost base, including operational efficiencies of between GBP 40 million and £50 million.
‘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 [financial 2025] outlook,’ it said, adding that it remains ‘on track’ to break-even on a run-rate basis in Germany during calendar year 2024.
Chief Executive Dominic Paul said: ‘We continue to execute against our strategic priorities at pace and given the structural shift in UK hotel supply, positive current trading, a clear commercial plan and our ongoing focus on driving cost efficiencies, we remain confident in the outlook.’
Shares in Whitbread rose 2.2% to 3,629.00 pence each in London on Thursday morning.
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