Premier Inn owner sees full rebound from Covid next year

Warned of labour shortages as it set aside tens of millions to attract new hires

Premier Inn is part of Whitbread.

Whitbread, the British owner of Premier Inn, which has targeted Dublin and Cork for new hotels, has posted a stronger-than-expected recovery from the Covid crisis in Britain.    

It reported a smaller-than-expected loss at the half-way stage and predicted a full recovery at its British hotels in 2022, but warned of labour shortages across the industry as it set aside tens of millions to attract new hires.

The company, which has 30,000 staff in 1,200 its hotels and restaurants in Britain, said it plans to spend about £23m (€27.2m) on salary increases and one-off bonuses as it deals with a "material number of vacancies". 

Premier Inn, Britain's largest budget hotel chain, said earlier this year it was pressing ahead to open three new hotels in the Republic, with further expansion plans for Dublin and Cork, as it looks for a rebound from the Covid-19 slump with the help of British visitors.

Its stockmarket-listed owner, Whitbread, operates 800 budget hotels in Britain, a hotel at Dublin Airport, and seven properties in the North, and wants to resume its Covid-delayed plans to add to its over 70 hotels in Germany. 

On Tuesday, the company said high occupancy levels at its hotels combined with the market-wide supply chain issues and tighter labour supply, especially in tourist locations and London, had created a challenging operating environment. 

Staff shortages due to the health crisis are widespread but Britain is also dealing with the fallout from Brexit, which has significantly reduced EU workers across a range of industries from poultry to the haulage sector.