Whitbread’s profits hit £413m amid strong Premier Inn performance
Looking forward, the group expects to open up to 2,000 rooms in the UK in the current financial year as part of a pipeline of 7,400 plus 1,000 to 1,500 in Germany
Premier Inn owner Whitbread Plc has reported that its annual adjusted pre-tax profit increased to £413m, for the 12 months to March 2, 2023 against a loss of £16m the previous year.
The report revealed that the result topped the pre-pandemic annual profit level of £358m achieved in 2019-20.
Revenue was also up to £2.6bn from £1.7bn the previous year and just over the £2bn recorded in 2019-20.
Meanwhile, total UK accommodation sales for the seven weeks to April 20 are up by 17% over the same period last year, Whitbread reported on current trading.
F&B sales were up by 40% compared with FY22 and 4% behind pre-pandemic levels with increased spend per head outweighed by a decline in customer volumes.
Looking forward, the group expects to open up to 2,000 rooms in the UK in the current financial year as part of a pipeline of 7,400, and another 1,000 to 1,500 in Germany.
Dominic Paul, chief executive at Whitbread, said: “These are a fantastic set of results. Whilst the recovery in market demand in conjunction with a structural decline in the independent sector has provided a helpful backdrop, it is the combination of our own initiatives and our clearly differentiated business model that has sustained our brand strength and delivered such an impressive operational and financial performance.
“These results reflect the strength of our business model and our persistent focus on delivering an excellent and consistent guest experience across all of our hotels and restaurants. That focus is embedded within our business strategy, that my predecessor, Alison Brittain and the whole executive team executed brilliantly through one of the group’s most challenging trading periods. It has also created a platform for future growth, both in the UK and in Germany. This sets us apart from our competitors as we continue to invest through the cycle with a clear focus on capital discipline and operational excellence.”
He added: “Having spent time out in the business operations, both in the UK and Germany, I am clear that our strategy is the right one and I am hugely excited about the opportunities we now have in front of us. I want us to strengthen further our position as the UK’s leading hotel brand, improve our F&B performance, continue to drive our efficiency programme, complete some important technology projects and replicate our UK model at scale in Germany.
“I am confident that we can deliver on each of these tasks and more. To do so will require the continued dedication and hard work of our Executive team and all of our 40,000 team members, each of whom plays a vital role in driving our success. I am excited to be leading such a great team and I am optimistic about our prospects.”