A stronger second half helped the UK hotel market recover in 2025, but London lagged, and rising costs mean many operators are still struggling to grow profits.
Premier Inn's owner said it's considering a strategy shift in response to criticisms by activist investor Corvex. But it may not reveal any changes until its next financial update in April.
Whitbread is a year into a five-year strategy. Corvex wants it to stop and reassess. That puts pressure on the Premier Inn owner to justify its long-term plan.
Premier Inn's headline performance number wasn't great. Revenue per available room was down 2.5% year-over-year in the third quarter. But in hotels, like in life, context is everything.
The most intriguing of Premier Inn's plans is to replace many of Whitbread's restaurants with mini-hotels. While this tactic is only a small part of the brand's overall growth plan, it highlights how hotels are outperforming restaurants.
Premier Inn hotels are like shoeboxes, but their beds have comfy mattresses that come with a "good sleep" guarantee. The profitable brand anticipates strong growth in the UK and Germany.