Premier Inn-owner in €798m loss as Covid restrictions bite

Tue, 27 Oct, 2020 - 16:15

Tanishaa Nadkar

Whitbread said business had slowed this month after the UK government asked people to work from home and imposed new regional lockdowns, adding to pressures after the Premier-Inn owner posted a hefty first-half loss.

The UK government reimposed curbs in September and in response, Whitbread plans to cut up to 6,000 jobs at its hotels and restaurants, it said last month.

In Ireland, Premier Inn have seven hotels, including three in Belfast and one in Dublin.

Premier Inn UK’s occupancy level increased to 58% in September from 51% in August, but has dropped back to around 50% so far in October, chief executive Alison Brittain said on a call with the media.

Tighter restrictions could lead to a further decline in November and December, she added. It signed a deal for up to 15 hotels in Germany, with the total investment expected to be up to €50m as it further expands there.

The owner of the Beefeater, Brewers Fayre, and Bar + Block chains also said it expects subdued demand at its restaurants, hurt by the new curbs.

Pretax loss, including an impairment charge, was £724.7m (€798m) in the first half, compared with a pretax profit of almost £220m a year earlier.