Whitbread reports 58% profit gain

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.

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.