Whitbread, the owner of Premier Inn, experienced a 14% drop in adjusted pre-tax profit due to increased costs and reduced UK bookings. Despite this decline, the company's shares rose by 4% following the announcement of a £2 billion return to shareholders through buybacks and dividends by 2030. While UK bookings, especially in London, weakened, Germany showed promising growth driven by events. Whitbread CEO Dominic Paul indicated that Premier Inn could benefit from changing travel preferences among European tourists, with expectations of growth in Germany and an emphasis on cost-saving measures in response to economic pressures. The company aims to accelerate hotel openings despite challenges.
Profits at Whitbread declined due to rising costs and lower UK bookings; however, shares increased on announced share buybacks and hotel expansions.
While UK bookings fell, there is a boost in Germany with higher event-related stays, indicating a potential growth area for Premier Inn.
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