Good news could be from Germany. Cash strapped Germans would be more likely to book into Premier Inns than more expensive competition. The business seems to have be doing well there and results there could exceed expectations.
FY24 revenue for Germany was up 64%.
"In Germany, we are building a business of real scale and remain on course to become the number one hotel brand achieving our long-term target of 10% - 14% return on capital. Together with our new efficiency programme, these initiatives will deliver a step change in our profitability, margins and returns."
Reeves NI hit won't help in the UK I agree but prices will rise across the board to accommodate it, and the higher cost of living again will favour budget brands such as Premier Inn over more expensive competition. |
From Barclays note today..
Premier Inn owner Whitbread PLC (LSE:WTB) faced a downgrade by Barclays analysts on Friday, prompting shares to fall.
Warning of consensus downgrades due to higher costs on the back of last month’s Budget, Barclays bumped Whitbread’s rating from ‘overweight217; to ‘equal weight’.
“As we look out over the next 12 months, it is not clear to us where the 'good news' will be coming from,” Barclays said.
Higher labour costs are likely to hit business investment in travel and entertainment, in turn weighing on Whitbread, analysts added, making it difficult for the chain to hike prices.
Whitbread earlier this week had been among hundreds of hospitality firms to warn over the impact of higher employer national insurance costs, introduced in the Budget.
proactiveinvestors.co.uk |
Germany is largely responsible for the lower rating I reckon.
They have ploughed approx £1 Billion in to Germany expansion already and the outlook for the German economy is dimming.
Now Trump and tarrifs may result in an ugly outlook for a country with such strong exports.
This may also explain shorts building again. |
Ouch that's quite a lower rating! |
Barclays cuts Whitbread to 'equal weight' (ow) - price target 3,160 (3,850) pence |
So shorts built again on the recent share price rebound. |
Fund % short change Date changed
GLG Partners LP 0.60% 0.10% 30 Oct 2024
Marshall Wace LLP 0.70% 0.07% 13 Nov 2024
Squarepoint Ops LLC 0.50% 0.01% 21 Oct 2024
Total 1.80% |
Plans for Edinburgh Airport to get new Premier Inn '10-minute walk' from terminal
If approved, Edinburgh Airport customers could walk from the new four-storey budget hotel to the terminal in just ten minutes. |
Yes, 2780p is chart support. |
Heading towards 2800 or lower ? |
And Reeves is beginning to come across as Truss Mk2! Maybe a cabbage leaf will be her emblem ;-) |
Kiss of death from Questor.
Talk today of next interest rate cut may have to wait until May 2025 |
Telegraph Questor tip today
This company’s punchy expansion plans are built on solid foundations
Questor share tip: market share gains and strong pricing suggest this stock can deliver long-term capital appreciation and dividend growth
A positive first-quarter trading update last month from Whitbread (WTB) looks to reinforce the investment case for the Premier Inn-owner |
Crozier to check out of Premier Inn-owner Whitbread
Whitbread is working with Russell Reynolds Associates on the hunt for a replacement for Adam Crozier, who has chaired the company since 2018, Sky News learns. |
tlobs, not sure a Trump win is great for WTB!, but you may those as unconnected obvs |
LOL.... I'm not short, nor have I made any ramblings.... if you knew what was going on you might reconsider but good luck in your holding tlobs. |
And well done Donald Trump on his landslide victory.
"Dow futures surge 1,000 points as Trump closes in on presidential election win: Live updates" |
Despite one of our resident doom mongering shorters (alibx11) constant negative ramblings I've added more shares this morning.
Next stop £35 ;-) |
 Standards of premier inns are definitely dropping
I use or rather used to use a premier inn once a week, not any more.
The reason is penny pinching.
I often pay £120 for the room as I can only book it around 3-5 days in advance, plus another £10.99 for breakfast plus pay extra for the faster WiFi as the standard WiFi is pathetic.
I can get good alternative hotels for similar if not less money with free breakfast and free fast WiFi.
I choose premier inn for years as I knew what I was getting, it was never luxury but it was dependable.
So back to the penny pinching.
Premier inn have quietly dropped decaffeinated tea bags.
That may not seem like a big deal to some, but for me it was a deal breaker.
They have also not reinvested in the estate, I have stayed in too many which are showing signs of wear in the room and more alarmingly in the neighbouring chain restaurants and pubs.
Some of the meals and breakfasts I have been served have really put me of using them, it’s glorified microwave meals but not at weatherspoons prices.
The restaurants themselves all seem to be dark, poorly lit and as a result poorly cleaned.
The premier inn is becoming more and more like a glorified travelodge but at a far higher price.
I have wrote to the company on 4 occasions in 2024 about issues, each time I was fobbed off despite raising issues with on site with management who couldn’t help.
So now I vote with my feet, I don’t use premier inn anymore and have no reason to go back.
I have also tried the premier plus rooms, I really can’t see what the fuss is about. |
Dear oh dear, turning into a horror show this one. |
You can though open more in Germany |
National Insurance going up, but you can't offshore hotels. |
draft duty cut by 1.7% a few minutes ago and look at the reaction! |
Another sale... |
If this is your largest holding then I really hope I'm wrong for you DB, it's all a matter of averages, time will tell. |
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