Whitbread PLC (LSE:WTB) said that sales recovery is ahead of expectations and the UK arm could reach full recovery “at some point in 2022”, even though uncertainties remain.
The hotelier said it is confident in the return to pre-pandemic UK profit margins, however it will have to wait to assess the speed of recovery once there is greater visibility of longer-term inflation and supply chain pressures.
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"Whitbread traded significantly ahead of the market in the UK during the first half of the year, with our regional hotels trading ahead of pre-COVID-19 levels in the last six weeks of the half,” said chief executive Alison Brittain.
“This strong performance has continued into the second half, with sustained high levels of leisure demand and resilient demand from tradespeople.”
In the 26 weeks to 26 August, revenue was 39% below 2019 levels at £661mln and well above last year’s £250mln.
The Premier Inn owner was still loss-making with a £39mln loss before tax, much smaller than last year’s £724mln but a way away from profits of £219mln recorded in spring/summer 2019.
The FTSE 100 group had £1.1bn of cash and cash equivalents.
Recovery in UK demand was very strong post-17 May when leisure overnight stays were permitted, while occupancy in Germany grew to 47% in the second quarter and over 60% in August and September.
Trading in the UK has benefitted from the absence of any COVID-19 restrictions.