Premier Inn owner Whitbread on Tuesday revealed how much political and economic uncertainty is hurting the business.
Boss Alison Brittain said that, while trading was strong in London in the first half, conditions in the regional market have been “difficult”.
The hotels operator pointed to “business confidence remaining weak and leisure confidence in decline, coinciding with heightened political and economic uncertainty”.
The FTSE 100 company, which is now more exposed to the hotels market after a £3.9 billion sale of its Costa Coffee arm to Coca-Cola in January, said revenues in the six months to August slipped 0.1% to £1.1 billion.
Comparable UK hotel sales fell 3.6% and adjusted pre-tax profit dropped 4.1% to £236 million.
However, shares in the firm edged up slightly, 9p to 4212p. UBS analyst Jarrod Castle put that down to “relief that the results are broadly in line with expectations and guidance”.
Brittain said looking ahead there are plans to open 2000 more ‘Premier Plus’ rooms, which cost between £10 and £20 more than a normal booking. They offer guests more comforts such as a choice of pillows.
The boss added that growth plans in Germany are on track.
