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Premier Inn-owner Whitbread's profit hit by fall in British business travel

Early indications showed Whitbread's shares trading about 2% lower.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Hotel chain owner Whitbread Plc reported a lower first-half pretax profit on Tuesday, as the uncertainty surrounding Brexit kept companies from spending on business travel in the United Kingdom.

Early indications showed Whitbread's shares trading about 2% lower.

Businesses inside the United Kingdom have been putting off travel this year as they wait for more clarity on what the terms of Britain's divorce deal with the European Union will look like.

"Shorter-term trading conditions in the UK regional market have been difficult, particularly in the business segment where we have a higher proportion of our revenue," Whitbread Chief Executive Officer Alison Brittain said.

The dent in hotel demand has been felt especially in regional markets outside London where 80% of the Premier Inn hotels are located.

Whitbread said it was difficult to predict business confidence and its impact on demand for short stay and domestic travel during the second half of the year.

Whitbread plc

Sell: 4,331.00 | Buy: 4,334.00 positive 79.00 (1.86%)
Graph
Prices delayed by at least 15 minutes.

The company, which also owns the Beefeater restaurant chain, said adjusted pretax profit fell 4.1% to 236 million pounds for the six months ended Aug. 29. (https://reut.rs/2qBtZ8F)

Overall adjusted revenue dipped marginally to 1.08 billion pounds. (Reporting by Tanishaa Nadkar and Uday Sampath in Bengaluru; Editing by Shounak Dasgupta)


Copyright (2019) Thomson Reuters. This article was from Reuters and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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