Whitbread reports ‘divergence’ between London and regional hotel markets

Whitbread has seen a “divergence” between London and regional hotel markets, according to its latest trading update for the 50 weeks to 11 February 2016.

The company reported total sales growth of 10.4% during the period, in line with the group’s expectations, as like-for-like sales also grew 3.2%.

Its Premier Inn hotel brand saw an 11.1% increase in total sales for the 50-week period, with like-for-like sales rising by 4.4%. Revenue per available room (RevPAR) was up 3.6%, while occupancy was in line with last year at 81.1% and total room nights sold increased by 7.4% to 17 million.

However, Whitbread noted a “divergence in performance” in the last quarter (the 11 weeks to 11 February 2016) between regional and London hotel markets.

In the regions, Premier Inn grew total sales by 8.3%, with a 6.8% increase in rooms available. Total and like-for-like RevPAR grew by 1.5% and 1.4% respectively, and regional occupancy remained high compared to the market at 70.6%, up 0.5% on the previous year.

Meanwhile, the group said the hotel market in London was “softer” as total sales grew by 3.6% in the quarter, with an 8% increase in rooms available. RevPAR and occupancy for the brand’s London hotels – although broadly in line with the market – was down 3.6% and 1.5% respectively.

Despite this, occupancy in London remained high at 76.1%.

Alison Brittain, chief executive, said: “In the quarter, Premier Inn had a good performance growing total sales by 7.3% with occupancy rising by 0.3% pts to 71.4% and rooms available increasing by 6.9%.

“Like-for-like sales grew by 2.2%, which is ahead of our like-for-like RevPAR growth at 0.4%, as we benefitted from our substantial, higher returning, hotel extensions programme.”