Premier Inn owner warns of tax burden on hotel investment

Summarised from 2 outlets · Updated 13 Oct, 17:09 · Archive

Whitbread, which owns Premier Inn, has scaled back planned hotel investments due to UK tax increases, its chief executive has warned.

Whitbread, the owner of Premier Inn, has scaled back planned hotel investments that would have created jobs due to UK tax increases, its chief executive Dominic Paul has warned. He called the last two budgets 'most unfriendly to hospitality ever' and called for a freeze on property taxes, particularly ahead of the autumn Budget.

Hotels are facing pressure from the end of pandemic-era business rates relief and updated property valuations that will affect tax calculations from April 2026. The Government has announced rates relief for some parts of the hospitality sector, such as pubs and music venues, but did not extend this to hotels. Mr Paul said potential tourist taxes would be 'very unhelpful' for Whitbread's 842 hotels.

Despite these pressures, Whitbread reported 'strong trading momentum' in the UK and Germany. Total revenues rose 2 per cent to £1.57 billion for the six months to 27 August, though adjusted pre-tax profits slipped 9 per cent to £287 million as the company pursues a five-year transformation plan. It has completed plans to close its branded restaurants, affecting the Beefeater and Brewers Fayre brands.

How it is being reported

• Premier Inn owner warns tax hikes are costing hotel investments and jobsWhitbread boss urged Andy Burnham to freeze property taxes ahead of his first autumn Budget later this monthIndependent Business · 13 Oct, 16:47
• Premier Inn owner brands last two Budgets 'most unfriendly to hospitality ever'The boss of Whitbread has called on the Government to help hotels with 'punitive' business rates and roll back National Insurance changes.This is Money · 13 Oct, 12:13

In this story: Whitbread · Premier Inn · Dominic Paul · Andy Burnham

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