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investors in Prime The owner of the Inn will be hoping Britain’s biggest hotel chain will be boosted in the summer by rising hotel prices and fans flocking to UK music festivals.
Whitbread, which also owns the Beefeater and Brewers fare chains, will publish its half-year financial results on Thursday.
a group of analysts for i vine It pointed to reports that “bookings and pricing have improved over the UK summer” and that some shareholders expect some “good news” from the latest results.
Official inflation data has shown that annual UK hotel prices rose in July and August, mainly due to an increase in hotel stay bookings the night before.
It coincided with a series of major events including Oasis’ reunion concerts. bad game The concert, which led to increased demand for hospitality and hotel rooms among hordes of fans.
Richard Hunter, head of markets at Interactive Investor, said: “There was little to cheer investors about from the company’s update in June, even though it needed to be taken in the context of Whitbread’s ambitious five-year plan.”
At the time, the company revealed that its housing sales declined 2% in the first quarter compared to the previous year.
This led to a sharp 16% decline in food sales year-on-year.
This was partly attributed to it being in the midst of a £500 million plan to revive its restaurant business, which includes converting 112 branded restaurants into new hotel rooms and selling 126 others.
Whitbread previously said it was on track to save £60 million this financial year.
“The irony of the devastation caused by the pandemic is that it provided Whitbread with some prime opportunities to align with structural change in the sector,” Mr Hunter said.
“As a result many independent hotels closed and there was no new hotel construction activity, opening up the market to larger operators.
“It contributed awards in With a 12% share of total hotel room supply, it has become the largest hotel chain in the UK.”
Meanwhile, AJ Bell said investors will be keeping a close eye on Whitbread’s expansion plans, with it aiming to add 1,000 to 1,200 rooms to its current 86,000-strong UK property this financial year.