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Whitbread has reported a 2% decrease in total accommodation sales and revenue per available room (RevPAR) in the first quarter of 2026.
The group’s food and beverage sales were also down 16%, in line with expectations, reflecting the impact of Whitbread’s Accelerating Growth Plan, which includes redeveloping sites to unlock 3,500 new rooms.
Despite the drop, Premier Inn outperformed the UK midscale and economy market, with sales 1.7 percentage points ahead and RevPAR growth 1.6 points ahead, widening its RevPAR premium to £5.63.
The group reported stronger relative performance in London, where Premier Inn outpaced the market by 3.9 points on accommodation sales and 2.4 points on RevPAR. Regional sales were also ahead, by 0.5 and 0.7 points respectively.
The update comes as Whitbread secured planning approval for its first 157-bedroom hotel in outer Dublin.
The five-to-eight-storey development at 5 Arkle Road will feature Premier Inn’s latest bedroom and ground floor formats.
Whitbread acquired the long leasehold interest in the site in December 2023 as part of its strategy to expand Premier Inn in Ireland, where it sees potential for 5,000 rooms.
The company has opened five hotels in Dublin since 2021, including a large site at Swords near the airport, and expanded to Cork in 2024.
Further expansion is planned for 11 locations across Ireland, including Galway, Limerick, Waterford, and tourist destinations such as Killarney, Sligo and Tralee.
The current occupier of the Sandyford site, The Wall Climbing Gym, has relocated nearby. Whitbread stated that it is working with the tenant to allow continued trading until demolition work begins in early 2026.
Looking ahead, Whitbread expects to deliver incremental profit of at least £300m by the 2029/30 financial year, and aims to return more than £2bn to shareholders through dividends and buybacks.
Additionally, in the UK, its forward booked position remains ahead of last year and whilst forward visibility remains limited, its commercial initiatives are “underpinning its confidence in being able to continue to outperform the market”.
