Premier Inn Feels the Pinch

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. April 29, 2009

APRIL 28, 2009 - Whitbread, owner of Premier Inn, has posted a 9% rise in pre-tax profits but warned the budget hotel chain is feeling the impact of the downturn.

The group reported "good progress" in the year despite "increasingly difficult economic conditions".

Group pre-tax profits rose to lb229.9m in the 12 months to February 26, compared with lb210.3m the previous year, and ahead of analyst forecasts of lb221m.

In the final quarter Premier Inn had suffered reduced occupancy rates, which pushed group like-for-like sales into the red from 6 percent head for the year.

The group said like-for-like revenues per available room at Premier Inn chain were up 2.8%.

Anthony Habgood, chairman of Whitbread, said the chain's value offering would help see it through the difficult economic climate.

"2008/09 was a year of good progress and, against a backdrop of increasingly difficult economic conditions, we delivered an industry leading performance. We are focused on managing Whitbread prudently and tightly in the face of the challenges ahead."

In December Whitbread said it would cut expansion plans this year to around half lb170m. The group said was on track to meet its cost efficiency plan, with a lb7m saving last year. It plans to cut lb25m from the business by 2010/11.