Premier Inn owner Whitbread PLC's (LSE:WTB) third quarter trading update next Thursday will see shareholders checking in to try and find comfort over the issues which have caused shares to slip by 11% over the last 12 months and over 30% since before the pandemic.
The shares have been weighed down by a slowing economy in its key UK and German markets, said analysts at AJ Bell, along with the squeeze on consumer incomes as a result of soaring inflation and forecast downgrades as a result of higher energy, staff and input costs.
In terms of hard figures, City analysts will be keeping an eye out for sales growth, revenue per available room (REVPAR), comments on inflation and any efforts to mitigate those and any guidance on profit for the year.
Analysts at UBS, in a separate note predicting the ongoing recovery of the wider travel industry, believe the hotelier should expect “continued market share gains and outperformance of the midscale/economy segment where it has 100% exposure”.
The coming week's trading update is expected to highlight how current pricing levels are counteracting cost setbacks, the analysts added.
“We expect the company will be on track to deliver on its room target (3.5-4.5k),” analysts said, predicting total sales to be up 22%.