Budget chain Premier Inn UK is continuing to outperform the UK midscale and economy hotel sector as owner Whitbread reported a “significant profit uplift” to above pre-pandemic levels.
Annual adjusted pre-tax profits came in at £413 million for the 12 months to March 2 against a loss of £16 million the previous year.
The result topped the pre-pandemic annual profit level of £358 million achieved in 2019-20.
Revenue was up to £2.6 billion from £1.7 billion the previous year and just over £2 billion in 2019-20.
Whitbread said: “We see considerable opportunities for growth, both in the UK and Germany, driven by the strength of our operating model and the structural decline in the independent hotel sector. “
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The company added: “Current trading remains strong, despite macroeconomic uncertainty, with encouraging lead indicators.”
Total UK accommodation sales for the seven weeks to April 20 are up by 17% over the same period last year, Whitbread reported on current trading.
Looking forward, the group expects to open up to 2,000 rooms in the UK in the current financial year as part of a pipeline of 7,400 plus 1,000 to 1,500 in Germany.
New Whitbread chief executive Dominic Paul, former Royal Caribbean UK and Ireland managing director before moving to Costa Coffee and Domino’s Pizza Group, said: “These are a fantastic set of results.
“Whilst the recovery in market demand in conjunction with a structural decline in the independent sector has provided a helpful backdrop, it is the combination of our own initiatives and our clearly differentiated business model that has sustained our brand strength and delivered such an impressive operational and financial performance.
“These results reflect the strength of our business model and our persistent focus on delivering an excellent and consistent guest experience across all of our hotels and restaurants.
“That focus is embedded within our business strategy that my predecessor, Alison Brittain, and the whole executive team executed brilliantly through one of the group’s most challenging trading periods.
“It has also created a platform for future growth, both in the UK and in Germany. This sets us apart from our competitors as we continue to invest through the cycle with a clear focus on capital discipline and operational excellence.
“Having spent time out in the business operations, both in the UK and Germany, I am clear that our strategy is the right one and I am hugely excited about the opportunities we now have in front of us. I want us to strengthen further our position as the UK’s leading hotel brand, improve our F&B performance, continue to drive our efficiency programme, complete some important technology projects and replicate our UK model at scale in Germany.”
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