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(Alliance News) - Whitbread PLC on Thursday said it will maintain its guidance for the financial year ending March 31 after posting a jump in its quarterly accommodation sales.
For the 13 weeks to November 30, the Dunstable, Bedfordshire-based owner of the Premier Inn chain of hotels said Premier Inn UK sales grew 11% year-on-year, citing "strong demand" in London and the regions.
Total revenue per available room in the UK rose 9% in the third quarter, and was up 39% from financial 2020, due to "high occupancy and strong pricing". UK food and beverage sales also performed well, with sales rising by 6%.
As for Premier Inn Germany, total accommodation sales jumped 47% as a result of continued expansion of the Premier Inn estate, with total RevPAR at EUR60.
Looking ahead, Whitbread said strong trading has continued into the fourth quarter of its financial year
with UK accommodation sales 12% ahead of financial 2023. Meanwhile, RevPAR is up 10% year-on-year and 39% ahead of financial 2020. UK F&B sales grew 7% from a year ago due to a "robust trading performance over the festive period". As for Germany, total accommodation sales were 61% ahead from the year prior.
The hotel owner added that it remains "comfortable" with its financial 2024 guidance of a pretax loss of between GBP30 million and GBP40 million, and that its annual guidance remains unchanged.
As for financial 2024, Whitbread expects net UK cost inflation of between 3% and 4% on its GBP1.7 billion to GBP1.8 billion cost base, including operational efficiencies of between GBP 40 million and GBP50 million.
"With a positive forward booked position in the UK, a favourable supply environment, a clear commercial plan and cost efficiencies, we remain confident in the [financial 2025] outlook," it said, adding that it remains "on track" to break-even on a run-rate basis in Germany during calendar year 2024.
Chief Executive Dominic Paul said: "We continue to execute against our strategic priorities at pace and given the structural shift in UK hotel supply, positive current trading, a clear commercial plan and our ongoing focus on driving cost efficiencies, we remain confident in the outlook."
Shares in Whitbread rose 2.2% to 3,629.00 pence each in London on Thursday morning.
By Sabrina Penty, Alliance News reporter
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