Hospitality behemoth Whitbread has disclosed a slump in º£½ÇÊÓƵ sales amidst a tough market environment and reorganisation of its pub and restaurant divisions.
The company, famed for its Premier Inn hotels, informed stakeholders early today that total º£½ÇÊÓƵ sales dipped by five percent in the first quarter of the financial year, with food and beverage sales tumbling by 16 percent, as reported by .
However, accommodation sales in London have fared better, registering a 3.9 percent increase compared to the previous year.
Despite the shake-up in its restaurant sector, Whitbread said that the performance of its food and drink services has been "in line with expectations."
Last year, Whitbread announced plans to transform 112 of its dining venues into hotel extensions, predominantly adjacent to existing Premier Inns, and to offload 126 sites which would result in the loss of 1,500 positions.
The firm noted that this expansion is set to enhance its portfolio by adding 3,500 rooms, while property sales have already pumped between £250 million and £300 million into the business.
Dominic Paul, CEO of Whitbread, commented: "In the º£½ÇÊÓƵ, we continue to outperform against a challenging market backdrop, with the strength of our brand and commercial programme continuing to drive total accommodation sales and RevPAR growth ahead of the market."
"Whilst the short-lead nature of our business means that our forward visibility remains limited, our forward booked position is ahead of last year and we remain confident that we can continue to outperform the market."
Whitbread has seen a robust 15 per cent increase in sales quarter on quarter in Germany, which, while a smaller part of the business, continues to demonstrate vigorous growth.
"In Germany, we delivered another strong trading performance, led by the increasing maturity of our estate and our commercial initiatives," Paul said.
The company is optimistic about its German division, anticipating it will achieve profitability for the first time this year.
Whitbread has set ambitious targets for the broader business, aiming for an incremental profit of at least £300 million by 2030, alongside plans to return £2 billion to shareholders through share buybacks and dividends.
