Whitbread PLC (LON:WTB) said most of its hotels have stayed open through the coronavirus lockdowns, although they are less than a third full.
The latest UK lockdown that started last week, which only permits essential business and keyworker accommodation, has resulted in around two-thirds of the group’s Premier Inn hotels remaining open, though all restaurants are closed.
READ: Whitbread downgraded as Peel Hunt gets its reductions in ahead of update
On the downside, increased restrictions led to total UK accommodation sales falling 66.4% year-on-year in the five weeks to December 31, 2020, with occupancy at 31.1%.
For the previous 13 weeks of the third quarter to November 26, most hotels were open, but accommodation sales were down 55.2% with occupancy at 49.3%.
Cash levels have dwindled to roughly £40mln from £196.4mln at the half-year, with capital spend of £98.4mln in the four months to the end of December and a reliance on the government's furlough scheme.
There is also cash on deposit of £814.9mln and the group has access to a £900mln undrawn revolving credit facility.
While the hatches are battened down in the UK, in Germany the company is continuing to expand its nascent estate, with a pipeline of 68 hotels after acquiring 13 last month.
“We expect the current travel restrictions in the UK and Germany to remain until at the very least the end of our financial year,” said chief executive Alison Brittain, who has asked landlords for a 50% rent holiday over the next three months to help it weather the effects of the pandemic.
“With the vaccination programme underway, we look forward to the potential gradual relaxation of restrictions from the Spring, business and leisure confidence returning, and our market recovering over the rest of the year.”