Whitbread’s Premier Inn UK Sales Dip 2% Amid Challenging Market

Whitbread (LON: WTB) reported a 2% year-on-year decline in accommodation sales at its Premier Inn UK division in the first quarter, despite continuing to outperform the broader midscale and economy market.

The hotel and restaurant group stated that total UK RevPAR (revenue per available room) also declined 2% for the 13 weeks to May 29, 2025. 

While trading remained solid in London, with accommodation sales up 3.9 percentage points and RevPAR ahead by 2.4 points, regional performance was more subdued.

Food and beverage sales in the UK dropped 16%, which Whitbread attributed to its Accelerating Growth Plan that includes optimising F&B offerings and adding 3,500 new hotel rooms.

Chief Executive Dominic Paul said: “In the UK, we continue to outperform against a challenging market backdrop. Whilst the short-lead nature of our business means that our forward visibility remains limited, our forward booked position is ahead of last year.”

In contrast, Premier Inn Germany delivered strong results, with accommodation sales rising 15% in sterling terms and estate RevPAR up 12%.

The company’s more established hotels in Germany recorded a 17% increase in RevPAR, significantly ahead of the local market.

Despite the mixed performance, Whitbread confirmed its £250 million share buyback is progressing, with £34 million spent so far. 

The group reiterated that its Five-Year Plan remains on track to generate at least £300 million in incremental profit by FY30 and unlock more than £2 billion in shareholder returns.

The company also stated that in the UK, its forward-booked position remains ahead of last year, while in Germany, it is “trading strongly” and remains on track to deliver profitability in FY26.