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(Alliance News) - Whitbread PLC on Thursday said it anticipates a boost in demand and a continued improvement in bookings, though sales still remain below pre-virus levels.
The Premier Inn hotel chain owner remained upbeat over its prospects as lockdown restrictions ease, noting "very strong" booking trends in tourist locations for the summer.
Despite the optimism, Whitbread's first quarter sales were down significantly compared to pre-pandemic levels. Total UK accommodation sales were down 61% in the first quarter, the 13 weeks to May 27, compared to the same period in financial 2020, so the 13 weeks to May 30, 2019.
Food & Beverage total sales were down 86% on two years earlier, reflecting the UK government's lockdown restrictions that were in place for most of the quarter. Whitbread said total first quarter sales were down 70% from two years earlier, and like-for-like sales were down 71%.
However, year-on-year, total first quarter sales rose 46%, or 45% on a like-for-like basis.
Whitbread said that since May 17, trading has been strong, with high levels of demand in tourist locations, driven by the anticipated bounce in leisure demand post reopening. The period was also helped by the May half-term school holidays.
Outside the UK, Whitbread said 19 of 30 operational hotels were open in Germany and occupancy levels were improving.
Looking ahead, Whitbread said its outlook and guidance is unchanged from April, despite the four-week delay in the UK government's Step 4 of lockdown easing, announced on Monday.
Whitbread expects leisure demand in coastal and other tourist locations to remain very strong throughout the summer, while the full recovery of leisure demand is dependent on the final release of lockdown, and the return of unrestricted events.
A GBP100 million three-year cost efficiency programme is "well underway", Whitbread said.
"The group traded significantly ahead of the market during the quarter, despite the impact of the UK government restrictions that were in place for the majority of the first quarter," said Chief Executive Alison Brittain.
"Trading in the UK since May 17, when overnight leisure stays were permitted, and when our restaurants fully reopened for indoor service, has been encouraging.
"Additionally, our forward bookings continue to improve, benefiting from the anticipated post-lockdown bounce in leisure demand, and a continued gradual improvement in business bookings. During the first quarter we opened 10 new hotels in the UK," added Brittain.
Whitbread shares were trading 3.7% higher in London on Thursday morning at 3,413.00 pence each.
By Will Paige; willpaige@alliancenews.com
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