British hotel group Whitbread said today that a key revenue metric for its mainstay UK business fell 4% in the past six weeks, dented by weak demand.
Still, the Premier Inn owner raised its interim dividend and announced a share buyback programme worth £100m.
Its total UK accommodation sales for the six-week period ended October 10 were down 1%, with revenue per available room (RevPAR) - an important metric for the hospitality industry - at £72.
The group also owns restaurant and pub chains such as Beefeater and Bar+Block Steakhouse.
It has seen a slowdown in demand, reflecting a return to more normalised levels after what was a strong performance last year when the impact of the pandemic on the leisure and travel industry started to wane.
Adjusted profit before tax fell to £340m for the six-month period ended August 29, from £391m last year, due to soft demand in the UK as well as the transitionary impact of the company's growth plan.
Whitbread said it was targeting further profit of at least £300m in the next five years and more than £2 billion as shareholder returns.
