Premier Inn-owner Whitbread PLC (LSE:WTB) is expected to showcase double-digit sales growth when it updates on its second-quarter trading, but analysts at Peel Hunt Ltd (AIM:PEEL) are interested to see how performance in the third quarter has started, especially as it is up against tougher comparatives.
During the third quarter of 2022, UK hotel occupancy was at 86%, with London at 87%, meaning revenue progress will have to be ignited from room rate increases.
Pre-tax profit is forecast by the broker to rise 6% to £555 million for the full year and current estimates from City analysts see first-half earnings coming in at £305 million – although this figure is dependent on the size of losses at its German operations.
In 2023 so far, Whitbread has been one of the FTSE 100’s top ten performers and this has impressed analysts who argue the stock has been able to remain resilient in the face of rising concerns towards consumer-facing companies.
Peel Hunt added: “The interims should highlight that demand remains strong and inflationary pressures are abating. We believe that further price progress is achievable as Premier Inn benefits from leisure and business guests trading down.”
Shares in Whitbread are down over 1% on Friday, having opened at 3,320p.