Premier Inns owner Whitbread has cautioned hospitality sector cost inflation will hit a higher level than anticipated.
The hotel chain owner said cost inflation this financial year was anticipated to reach between eight and nine per cent, one per cent more than previously expected.
The group said it anticipated to largely offset these higher levels of inflation through cost efficiencies, estate growth and pricing power.
However, Whitbread marked a strong recovery from previous Covid hits in results for the year to 2021. It posted statutory profit before tax of £58.2m, compared to a loss of £1bn the year prior.
Alison Brittain, Whitbread chief executive officer, said: “Whitbread’s performance in the year was strong, with revenues and profits recovering exceptionally well from last year.
“As we move into the next phase of our Covid recovery, this excellent performance, combined with confidence in the group’s outlook, means that the Board is now proposing the reinstatement of dividend payments.”