Rumours of an impending fall in consumer demand as we head into 2024 are off the mark according to Premier Inn owner Whitbread.
Announcing its results for the first half of its financial year the company said it was "optimistic about the outlook" with leisure and business demand remaining strong. Forward bookings as well as favourable supply dynamics have given it confidence that the current trajectory can continue.
Across the travel and hospitality industry there have been some recent hints at softness as we head towards the end of the year and Whitbread’s comments will reassure those worried about a potential drop in consumer confidence.
With supply being constrained across its core markets, Whitbread is seeking opportunities to grow its pipeline towards a target of of 125,000 rooms across the UK and Ireland.
Financial highlights in H1
- Total UK accommodation sales were 15 per cent ahead of H1 FY23 and 55 per cent above H1 FY20.
- In its German business total accommodation sales were up 82 per cent vs H1 FY23.
- Profit before tax rose 29 per cent to £395 million.
What they said
Dominic Paul, Whitbread CEO, said: "We are generating significant operating cash flow that we are redeploying into future profit growth as well as returning value to shareholders through increased dividends and share buy-backs. Given the structural shift in hotel supply and by continuing to invest in our assets, our brand and our teams, we remain confident that we can both extend our market leading position in the UK and replicate that success in Germany."