Whitbread UK sales fall on weaker hotel demand
Whitbread
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16:35 25/04/24
UK like-for-like third quarter sales at pubs to hotels group Whitbread fell 1.3% as Brexit-related weak accommodation demand offset a strong good performance in food and beverages in “challenging” conditions.
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The Premier Inn owner on Thursday said like-for-like sales at its hotels unit fell 2.1% during the quarter, while food and beverages rose 0.4%.
UK total sales grew 0.3% in the third quarter as weak business and leisure confidence in the regions continued, partially offset by the strength of the central London market.
Whitbread said growth in Germany remained on target “as our confidence strengthens for the long-term market opportunity”.
The company, which runs the Beefeater and Brewers Fayre pub operations, added that total sales from its UK and international businesses rose 1%.
“We are pleased with the performance of all three hotels we have opened to-date, in Frankfurt, Hamburg and Munich, and continue to extend the total committed pipeline in Germany. The open plus committed pipeline now stands at around 8,500 rooms across 48 hotels, including 22 hotels from the Foremost Hospitality and AcomHotel acquisitions. We will be opening around 20 hotels through the course of 2020.”
The company said it expected German losses to improve to around £10m next year as the pipeline accelerated.
Whitbread remained cautious on the outlook for 2021, as the UK political & economic environment remained uncertain and sustained industry inflation continued.
“It remains difficult to predict business confidence in the short-term and its impact on the market,” the company said.