Budget hotel chain Premier Inn has reported a softening in corporate travel demand over the summer, although strong leisure bookings helped parent company Whitbread deliver performance broadly in line with last year.
In its half-year earnings update for the six months to 28 August 2025, Whitbread said business travel volumes were “slightly lower” and consistent with the wider market, even as the company benefited from “robust leisure demand” across the UK. Premier Inn, which operates more than 900 hotels across the UK, Ireland and Germany, maintained stable occupancy levels through the peak summer period.
Total group revenue fell by 2% year-on-year to £1.54 billion, while adjusted pre-tax profit dropped 6% to £316 million. Whitbread said performance improved after a “soft first quarter”, with the second half of the reporting period supported by a strong seasonal uplift and a return to market growth.
Premier Inn’s UK occupancy rate averaged 80.8%, down from 83.1% a year earlier. However, average room rates in London rose by 0.6% thanks to a buoyant events calendar and sustained domestic tourism. Outside the capital, average rates increased by 2.3%.
“Although we continued to see good revenue growth via Business Booker and travel management companies, overall business demand was slightly lower in the period in line with the wider market,” the company said.
Despite this, Whitbread noted “excellent progress” in driving B2B volumes through improved account management and incentives. Premier Inn’s integration into SAP Concur’s new travel platform earlier this year has also helped to grow its presence within managed corporate travel programmes.
Whitbread also highlighted “positive momentum” in Germany, where Premier Inn has continued its expansion strategy after entering the market in 2016. The company sees the region as a key long-term growth driver, complementing its dominant UK position.
Premier Inn currently holds around 12% of the UK hotel market with 846 properties offering more than 85,000 rooms. The brand plans to open a further 7,800 rooms in the coming years, including new developments under its city-focused hub by Premier Inn sub-brand.
Whitbread CEO Dominic Paul said the company remains confident in its growth strategy despite near-term corporate headwinds: “We are making strong progress on our accelerating growth plan which, together with our committed pipeline of both Premier Inn and hub by Premier Inn rooms, means we remain on track to reach at least 98,000 open rooms by 2030, extending our position as the clear market leader.”
With market conditions expected to remain mixed ahead of the November Budget, analysts will be watching closely to see how budget hotel operators balance slowing business travel with demand from price-sensitive leisure travellers.