Whitbread sales down but ‘outperforming’ the market

Whitbread insists it is making ‘good progress’ on its strategic priorities, as UK accommodation sales fell by 2% year on year in the 13 weeks to 29 May 2025.

UK food and beverage sales dropped by a steeper 16% in the same period, but the Premier Inn owner said this was expected as it continued its shift to convert its branded restaurants into bedrooms.

Premier Inn’s revenue per available room (revpar) was also down 2%, but the business said it had outperformed the midscale and economy market, according to the latest STR data, with total accommodation sales 1.7% ahead, revpar growth 1.6% ahead and an increased revpar premium of £5.63.

The company recorded a strong performance in London during the quarter, on both accommodation sales (+3.9%) and revpar (+2.4%).

Whitbread chief executive Dominic Paul said the business was making “excellent progress” with its expansion in the UK and Germany, and remained on course to deliver £60m of cost efficiencies and meet its target of generating £250m - £300m from property disposals this year.

“Our five-year plan is on track and will deliver a step change in profits, margins and returns over the next few years,” he said, with the plan aiming to deliver incremental profit of at least £300m by FY30.

“In the UK, we continue to outperform against a challenging market backdrop, with the strength of our brand and commercial programme continuing to drive total accommodation sales and revpar growth ahead of the market.”

Whitbread said its UK forward booked position remained ahead of last year and its commercial initiatives underpinned its confidence in being able to continue to outperform the market.

Previously the budget hotel brand reported a 1% drop in group revenue for the 52 weeks to 27 February 2025 amid restaurant closures and cost pressures.

The firm is planning to sell and lease back at least £1b of its mature hotels to fund its future growth.

Meanwhile, the business has secured a planning grant to build its first hotel in Outer Dublin at Sandyford Business Park.

The 157-bedroom Premier Inn will be between five and eight storeys high and will feature the brand’s latest bedroom and ground floor formats.

Whitbread acquired the long-leasehold interest of the site in December 2023 as part of its expansion strategy for Premier Inn in Ireland where it sees the potential for 5,000 hotel rooms across the country.

Matt Gent, development manager for Whitbread in Ireland, said: “We have selected a superb location for our debut in Outer Dublin at Sandyford Business Park. It is a hugely successful business destination, yet it lacks the affordable branded hotel accommodation that Premier Inn provides so well.

“Securing a planning grant to build a new, latest format 157-bedroom Premier Inn hotel at Arkle Road is a huge achievement for the team and another important milestone in the expansion of the Premier Inn across Ireland.”