Brexit worries hit Whitbread's Premier Inn

First quarter like-for-like revenue per available room at Whitbread's Premier Inn division fell 6% as Brexit concerns and cost inflation continued to weigh.

The food and hotel company, which last year sold the Costa coffee chain to Coca-Cola for £3.9bn, said total UK like-for-like sales were 3.7% lower.

“The weaker business and leisure confidence has continued, as referenced at the start of the year, coinciding with ongoing political and economic uncertainty in the UK. This has impacted domestic hotel demand, particularly in the regional business market, where most Premier Inn hotels are located,” the company said in a trading update.

"Although forward bookings look positive, caution remains on the UK hotel environment given ongoing political uncertainty and the impact this has on business confidence," the company said as UK total accommodation sales fell 1.5%.

The company has started opening hotels in Germany to diversify its operations. It said its Frankfurt hotel was performing well with occupancy levels of around 70%, while the Hamburg property, which has been open for three months was "ahead of expectations with very positive customer feedback".

"This year, two organic hotels in Germany will be opened and Whitbread will complete the first tranche of the Foremost Hospitality acquisition of 19 hotels, with 13 being rebranded to Premier Inn in the first half of next year," the company said.