Premier Inn owner cuts hotel investments due to tax hikes

Summarised from 2 outlets · Updated 13 Oct, 14:32 · Archive

Whitbread, which owns Premier Inn, has cut planned UK hotel investments after recent tax rises, its chief executive said.

Dominic Paul, chief executive of Whitbread which owns Premier Inn, has said UK tax hikes caused the firm to cut back on planned hotel investments. The hospitality giant said recent budgets have "hammered" the industry through higher taxes and labour costs. Whitbread, which runs 842 hotels, warned that potential tourist taxes would be "very unhelpful" for the group.

Hotels have been impacted by the end of pandemic-era business rates relief and fresh property valuations in tax calculations from April 2026. The Government has announced rates relief for some hospitality sectors, such as pubs and music venues, but did not extend this to hotels. Last month, Andy Burnham said he would give regional mayors the power to introduce a visitors' levy on overnight stays from 2028.

Mr Paul called for the Chancellor to freeze property taxes ahead of the autumn Budget later this month. "We need this Budget to be a turning point for the industry," he told the Press Association. "What we have seen in recent budgets meant that we have had to cut potential investments in hotels, which would have created more jobs." Despite the investment pressures, Whitbread reported total revenues rose by 2% to £1.57 billion for the six months to August 27, though adjusted pre-tax profits slipped by 9% to £287 million.

Premier Inn owner cuts hotel investments due to tax hikes — Image: Evening Standard

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How it is being reported

Premier Inn owner pulled back hotel investments after tax hikes, says bossDominic Paul told the Press Association that ‘We need this budget to be a turning point for the industry’.Evening Standard · 13 Oct, 13:58
Premier Inn owner pulled back hotel investments after tax hikes, says bossDominic Paul told the Press Association that ‘We need this budget to be a turning point for the industry’.Independent Business · 13 Oct, 13:58

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

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