By Geoffrey Smith
Investing.com -- Whitbread (LON:WTB) shares rose nearly 5% as the hotel operator cashed in on the reopening of the European economy in the last couple of months.
Whitbread, which owns the Premier Inn hotel chain, reported that it had traded "strongly" in the first quarter of its new fiscal year, with comparable U.K. sales more than 20% up from pre-pandemic levels and more than triple last year's COVID-plagued numbers.
"This impressive Q1 performance together with improved visibility into Q2, gives us increased confidence in delivering a strong first half and remaining ahead of the market for the rest of the year," CEO Alison Brittain said in a statement. That's despite having to invest up to 30 million pounds ($37 million) in labor, IT, and refurbishments this year.
The U.K. was the first of Europe's big economies to relax COVID-19 restrictions this year, trusting to its relatively comprehensive vaccination program and the widespread natural immunity generated by high case numbers over the previous two years.
Whitbread also noted that trading in Germany had been stronger than it expected since the lifting of COVID restrictions, with occupancy running at some 65% currently.
"We are optimistic that the full year outlook in Germany is improving and there is no change in our view of the medium and long-term value creation opportunity for Premier Inn in Germany," Brittain said.
The group has also secured a new 775 million pound five-year revolving debt facility to replace its slightly larger existing one. That should help it to cope with any unforeseen dips in business if the pandemic returns again later this year.