Home Business News Premier Inn owner to cut 1,500 jobs

Premier Inn owner to cut 1,500 jobs

by LLB Finance Reporter
14th Jan 21 10:59 am

Whitbread who owns Premier Inns are to cut around 1,500 jobs as sales have more than halved due to the coronavirus lockdowns.

The company who also owns Beefeater and Brewers Fayre said in the 13 weeks to 26 November like-for-like accommodation sales plummeted by 56%.

Whitbread saw sales fall by 54.4% across the UK and by 74.9% in Germany leaving comparable sales 55.6% lower.

Chief executive Alison Brittain said, “We expect the current travel restrictions in the UK and Germany to remain until at the very least the end of our financial year.

“With the vaccination programme under way, we look forward to the potential gradual relaxation of restrictions from the spring, business and leisure confidence returning, and our market recovering over the rest of the year.”

William Ryder, equity analyst at Hargreaves Lansdown, said: “This hasn’t been a good year for hotels, and the last quarter has seen things deteriorate again for Whitbread.

“Occupancy rates had recovered to 58% in September, but the November lockdown and progressively tightening restrictions in December saw occupancy collapse.

“Now that the nation is back in a full on lockdown, Whitbread’s looking at another tough few weeks, and probably longer.”

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