Premier Inn owner Whitbread has today reported its annual profit above pre-pandemic levels, beating expectations, buoyed by strong demand for accommodation and leisure travel in the wake of holiday periods devoid of Covid-19 restrictions.
Budget hotel chains and airlines have seen robust demand as consumers restrict spending on the back of a deepening cost-of-living squeeze.
Hopes that Whitbread's key markets - the UK and Germany - could avoid recession also boosted business prospects for the London-listed firm.
The company said strong trading has continued into the new financial year, with its UK accommodation sales up 17% in the seven weeks ended April 20 from the same time a year ago.
The hotel chain also floated plans to launch a share buyback programme of up to £300m.
The company, which also owns steakhouses Beefeater and Bar+Block, reported adjusted profit before tax of £413m for the 52-week period ended March 2, compared with average analysts' estimate of £378.3m, according to Refinitiv Eikon data.
