Premier Inn, owned by Whitbread, reported a strong third quarter (Q3 FY2026), with its English and Ireland divisions seeing a 3pc increase in Revenue Per Available Room (RevPAR).
The group says this is driven by strong accommodation demand and outperformance against market rivals, alongside positive momentum in Germany where RevPAR grew 7pc. This growth contributed to overall group sales rising 2pc, with ongoing strategic shifts in food & beverage and positive progress in Germany’s maturing estate.
- Accommodation sales in Germany were up 12pcpc, RevPAR up 7pc to €76, outperforming the general trends in the German market.
- Food & Beverage sales fell 4pc, as anticipated, due to converting lower-return restaurants to hotel extensions under the Accelerating Growth Plan.
- The company noted strong momentum into the new year, with RevPAR up 4pc in the first six weeks of 2026.
- Whitbread raised its FY26 cost-saving target and reduced its expected business rate cost impact for FY27, signaling confidence.
Whitbread, parent company of Premier Inn, confirmed year-on-year demand growth and operational cost reductions in its latest earnings. Now England’s largest hotel brand by count maintains high occupancy at 83pc with RevPAR up 7pc in London. Development pipeline includes 3,500 rooms. The firm guides £253m (approximately €292m at current rates) in disposable proceeds for the year through sales such as a £89m (approximately €103m) deal for nine hotels to LondonMetric Property. Savings targets rose to between £75m and £80m for full-year 2026.
Market growth returned with positive RevPAR momentum after an inflection point last summer. Germany shows revenue up 12pc and RevPAR up 7pc in the third quarter with profitability expected this year. Gross inflation impacts the £1.7 billion (approximately €1.96 billion) cost base by 6.5pc to 7.5pc next year with net UK inflation at 3pc to 4pc in full-year 2027. The company reduced full-year expense guidance to approximately £35m due to business rates changes. Stock traded at £27.70 per share with a 4.61pc year-on-year decrease.
Dominic Paul, CEO of Whitbread PLC, shared “in England., the overall market continued its return to growth and we delivered a positive RevPAR performance, which has continued and stepped up in the current trading period. The structural shift in supply, together with our brand strength and commercial program, means we are confident in our ability to maintain a healthy RevPAR premium versus the market.”
