Premier Inn owner Whitbread PLC (LSE:WTB) faced a downgrade by Barclays analysts on Friday, prompting shares to fall.
Warning of consensus downgrades due to higher costs on the back of last month’s Budget, Barclays bumped Whitbread’s rating from ‘overweight’ to ‘equal weight’.
“As we look out over the next 12 months, it is not clear to us where the 'good news' will be coming from,” Barclays said.
Higher labour costs are likely to hit business investment in travel and entertainment, in turn weighing on Whitbread, analysts added, making it difficult for the chain to hike prices.
Whitbread earlier this week had been among hundreds of hospitality firms to warn over the impact of higher employer national insurance costs, introduced in the Budget.
Shares fell 0.9% on Friday, while Holiday Inn owner IHG gained 0.4% as it was dubbed as “preferred” to Whitbread.