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

By Dan Coatsworth — 2026-01-13

Dan Coatsworth, head of markets at AJ Bell, said: “Some good news from Premier Inn owner Whitbread at last.

“There are tentative signs of progress in the UK after a gloomy period.

“Germany is doing well and it has upgraded cost efficiency guidance.

“It’s been a while since positive momentum has been seen across all parts of the accommodation side of the business, hence the share price jump on the news.

“Whitbread now needs to keep it going and show the recent progress wasn’t simply a lucky blip.

“A lacklustre economic outlook in the UK is not helpful as it could deter domestic travel.

“Fortunately, Premier Inn chimes well with overseas visitors which helps to keep the tills ringing.

“It’s a competitive market but Premier Inn has a strong brand and is well positioned to thrive once economic conditions improve and drive greater business and leisure travel.

“The food and beverage arm continues to be a drag, but it is far from disastrous.

“Whitbread has low expectations for that part of the group and has been removing some of the lower-returning restaurants from its estate and converting some into extra hotel rooms.

“In time it should have a more streamlined and focused restaurant operation.”

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