7th Jul 2020 09:53
(Alliance News) - Whitbread PLC on Tuesday said more than 270 of its UK hotels reopened already and most of its remaining estate will reopen during July, after lockdown dealt a serious blow to first quarter sales.
Shares in Bedfordshire-headquartered Whitbread were down 4.4% at 2,333.00 pence in morning trading in London.
The company, which owns the Premier Inn hotel chain, said 24 of its UK restaurants and more than 270 of its UK hotels are open again after the Covid-19 lockdown with the majority of the rest reopening in July. All 19 of its German hotels are open again.
However, as expected given that lockdown restrictions forced almost all of Whitbread's estate to close from the end of March, sales fell sharply in the 13 weeks ended May 28.
UK like-for-like sales dropped 80%, including an 81% drop in Food & beverage sales and 79% fall in Accommodation sales. Total UK sales were also down 80% with a 79% Accommodation drop and 80% decline for Food & beverage.
UK & International total sales fell 79% in Whitbread's first quarter, with an 80% fall for Food & beverage and Accommodation sales dropping 79%.
During the lockdown, 39 of Whitbread's hotels were in operation to provide accommodation for NHS staff and key workers.
The company completed a GBP1 billion rights issue on June 10 to help enhance "financial flexibility" and the company's ability to execute its UK and Germany strategy.
Chief Executive Alison Brittain said: "It is still very early days and therefore too early to draw any conclusions from our booking trajectory, especially as there has been volatility in hotel performance in other countries that relaxed controls before the UK. However, in traditional regional tourist destinations, we are seeing good demand for the summer months, whilst the rest of the regions and metropolitan areas, including London, remain subdued."
Brittain added: "The successful completion of the GBP1 billion rights issue on June 10 will enable us to maintain our competitive advantage and financial flexibility, as we have both strengthened our balance sheet and secured the business so it can withstand a long period of low revenues. Our strong balance sheet, alongside both our leading operating model and the power of our brands, means that we are in the best possible position to take advantage of enhanced structural opportunities that we expect to become available in both the UK and Germany. This will mean that we are in a position of strength to continue to invest, increase market share, and over-time create significant value for shareholders."
By Anna Farley; [email protected]
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