Morning:
6°c
Government officials have been taking their lead from William Hague - cramming into cheap hotel rooms as part of the nation's drive for austerity. That's good news for Whitbread, the owner of Premier Inn, which produced another set of booming sales figures today.
Under chief executive Alan Parker, Whitbread has proved one of the winners from the recession, thanks to its bargain hotels, mid-range restuarants such as Beefeater and the strikingly popular Costa Coffee.
Parker is stepping down in November, to be replaced by ex-easyJet boss Andy Harrison. He will leave a business that is in good shape.
“We are good when times are hard and good when they are improving. We are getting lots of new government business in this age of austerity,” said Parker. “It is smart to be seen in a Premier Inn as opposed to the Hilton.”
Premier Inn revenues are up 10.7% in the 24 weeks to August 19, while Costa jumped another 8.3%. The restaurant arm is up a less stellar 3.9%.
Whitbread created another 1,000 - mostly minimum wage - jobs in the period. It now employs more than 34,000 people.
Premier Inn's market share is also on the up.
“We are taking a bit from everybody,” said Parker. “We are particularly outperforming the other budget operators and outperforming the full service hotels.”
On quiet days, a Premier Inn room goes for £29.
Nick Batram at KBC Peel Hunt said: “This was another solid update from the group and although comparatives get more challenging from here on in, we expect further bottom line growth.
Whitbread has thus far proven a rewarding investment in a tough market but this should not detract from the upside when the economic recovery eventually comes through.”
The shares slipped 9p to 1503p, leaving the company valued at around £2.65 billion.
