Hospitality giant takes sales hit in ‘tough market conditions’

Hospitality group Whitbread PLC has reported a dip in sales in the first quarter of this financial year due to ‘weak trading conditions’.

The group, which owns hotel chain Premier Inn as well as pub-restaurant brands Brewers Fayre and Beefeater, has reported an overall 1 per cent drop in sales across its UK and international businesses.

Total UK sales growth was down by 1.5 per cent, a dip which the group has attributed to difficult trading conditions combined with political and economic uncertainty.

Despite the drop in sales, the firm remains optimistic about both its UK and international business, with ongoing investment into Premier Inn being its key priority.

As well as investing in the UK arm of the business with the addition of 282 new rooms in the first quarter, the group is also currently expanding the hotel brand into Germany, following its acquisition of Berlin-based hotel group Foremost Hospitality.

Alison Brittain, Whitbread PLC chief executive, commented: “We have delivered a resilient performance in the first quarter despite more challenging market conditions…Our expansion into Germany is firmly on target. Our new hotel opening in Hamburg is performing above our expectations and our hotel in Frankfurt continues to perform well.

“Whilst we are cautious about short-term market conditions, we are confident in our plans given the significant growth opportunities in the UK and internationally.

She added: “Given our strong balance sheet, efficiency programme and robust business model, we are in a strong position and we will continue to invest in order to maintain Premier Inn’s competitive advantages and to capitalise on our structural growth opportunities.”

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