UK hotel and restaurant company Whitbread Plc have reported a 58% profit gain, thanks to the growth of its budget hotel brand, Premier Inn.
The increase in bookings at the hotel chain has seen the company’s profits rise to US $152 billion during the last six months, while the company’s recent figures saw it rise to a three-year high in London trading, as shares advanced by 2.1% — levels which the company has not seen since 2007.
Opening profits for the first-half of the year also increased by 21% in the company’s hotel and restaurant unit, compared with a 33% gain for InterContinental Hotels Group, the owner of the Holiday Inn hotel brand.
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The company can attribute some of the growth to expansion —Premier Inn added 795 rooms to its portfolio during the first half of the year — but has also seen an increase in business from its existing hotels; with hotels that had been open for a year or more saw revenue rise by 10%.
Premier Inn accounted for 44% of Whitbread’s sales last year, and reported a 9% increase in occupancy rates for the first half of the year (79% like for like occupancy rate).
The hotel chain has announced that it plans to add 1,700 rooms during the second half of the year, while a further 3,500 rooms are planned for next year.