# Premier Inn owner Whitbread set for lower-than-expected business rates hit

By Derren Nathan — 2026-01-13

Derren Nathan, head of equity research at Hargreaves Lansdown, said: “Whitbread’s shares have been under pressure, with investors questioning the company’s ability to absorb the impact of business rate rises following Rachel Reeves’ November Budget.

“Larger premises, such as Premier Inn’s hotels, have been the hardest hit.

“Today’s Q3 statement should provide some relief for investors, with demand accelerating in both the core UK and fledgling German operations. The shares were up five per cent in early trading.

“On the cost side, the group’s estimate of the next financial year’s business rate impact has been reduced below the previous range of £40-£50million to £35m, and the group is now set to drive greater-than-planned cost efficiencies this year.

“It’s also playing its part in the growing clamour by the hospitality industry for more supportive government policy.

“Whether this is enough to keep activist shareholder Corvax happy remains to be seen.”

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