Premier Inn owner Whitbread Plc reported higher third-quarter sales on Thursday 12 January, helped by strong demand for accommodation in the UK and higher room rates as people travelled for the first Christmas without pandemic curbs despite a cost of living crisis in Britain.
Budget hotel chains in particular have seen robust demand as consumers switch to affordable options, though economic uncertainties have now left them more cautious about their spending.
"The strength of our forward booked position, robust pricing, estate growth and efficiency programme all underpin our confidence in the outlook for full year of 2024," chief executive officer Alison Brittain said in a statement.
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The company, which owns Beefeater and Bar+Block, kept its cost outlook for fiscal 2023, but forecast net cost inflation on its 1.6 billion pounds UK cost base to be up between 7% and 8% next year.
It also hedged labour, food and beverages, as well as utilities costs by 75% for the next fiscal.
Jump In Total Sales
The hotel chain operator reported a 22.9% jump in total sales for the 13 weeks ended on 1 December from a year ago.