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Premier Inn has seen “very strong trading” for its hotels in the UK and Germany as demand for travel continues to build.
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The budget hotel chain, which is owned by Whitbread, said trading for its properties in both countries was “ahead of expectations” during the first quarter of its financial year from March to the end of May.
Average room rate for Premier Inn in the UK during the March-May 2022 quarter rose to £67.17, up from £56.52 in the previous financial year. Occupancy also improved from 68.1 per cent to 82.6 per cent over the same period.
Premier Inn’s average rate in London rose from £63.85 in the last financial year to £85.57 between March and May, while occupancy increased from 61.3 per cent to 83.1 per cent.
Whitbread’s CEO Alison Brittain said: “The strength of Premier Inn’s recovery in the UK continues to be ahead of expectations with a particularly strong Q1 performance that is well ahead of pre-pandemic levels and we continue to significantly outperform the market.
“In Germany, our open hotel estate now stands at 40 hotels, with a further 38 hotels in the pipeline. The quality and prime location of our hotels are proving highly attractive and are driving high customer scores.
“The trading performance of our more mature hotels in the two months post the lifting of Covid restrictions only reinforces our positive view of the significant opportunity in Germany.”
The company said it was benefiting in the UK from the “continued decline” of the independent hotel sector, which meant it remained “positive about our continued margin recovery in the UK” for the rest of the current financial year.
Premier Inn said the labour market “remains tight across the hospitality sector” and it expected to face additional costs due to “targeted” pay increases.
“We are also taking the opportunity to bring forward our investment in refurbishments and maintenance projects as well as accelerate some additional IT spend that will underpin our market leading position and drive future earnings,” added the company in its trading update to investors.
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