Whitbread-owned Premier Inn has a pretty good proposition for the current times. Despite pressures on household budgets, people will still need to get away from it all and while a family room in a budget hotel might not be everyone’s idea of proper break it is definitely more affordable than jetting off to Spain or staying in an upmarket resort closer to home.
AJ Bell’s Danni Hewson said: “The return of business travel is also helping the business and all in all, the first half results announced this morning were genuinely impressive.
“Clearly Premier Inn is doing better than the wider market and the German business, which faced a longer impact from Covid thanks to more onerous restrictions, is also showing signs of real improvement.
“The one fly in the ointment which seems to be preventing investors from getting too excited about any of these strengths is the surge in costs which Whitbread is facing. However, Whitbread has the financial resources to continue to invest in and grow the business despite these inflationary pressures.”
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