LONDON, UK — Whitbread, the hospitality group behind Premier Inn, has reported stronger accommodation sales in the UK and Germany while warning that cost pressures and restructuring expenses continue to affect profitability.

In its interim results published on 13 October 2026, the company reported revenue of £1.572 billion for the 26 weeks to 27 August, up 2% year on year. Adjusted profit before tax fell 9% to £287 million, while adjusted earnings before interest, tax, depreciation, amortisation and rent increased 1% to £608 million.

Whitbread said accommodation sales grew across the UK and Ireland, with further growth in Germany. The performance reflects the group’s focus on its hotel business as it works to strengthen its position in the competitive UK budget accommodation market.

The company is pursuing a five-year strategy that includes closing its remaining branded restaurants and selling selected freehold property. The plan is intended to concentrate investment on hotels and improve long-term returns, although the transition brings costs and operational challenges.

Whitbread maintained its full-year outlook and left its interim dividend unchanged at 36.4 pence per share. Investors will be watching whether continued hotel demand can offset inflation, restructuring expenses and the costs of expansion in Germany.

The key business test is whether Premier Inn’s hotel growth can translate into stronger profits as Whitbread reshapes its operations. Its next results will offer further evidence of whether the strategy is delivering sustainable returns.