The Aporia · Premier Inn owner pulled back hotel investments after tax hikes, says boss

Premier Inn owner pulled back hotel investments after tax hikes, says boss

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Saker-Clark, H. (2026, October 13). Premier Inn owner pulled back hotel investments after tax hikes, says boss. Evening Standard. https://www.standard.co.uk/business/business-news/andy-burnham-premier-inn-whitbread-press-association-hotels-b1300640.html

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Quick Summary

Dominic Paul, chief executive of Premier Inn's parent company Whitbread, stated that higher taxes and labor costs have led the firm to cut investments in hotels, despite a 2% revenue increase to £1.57 billion for the six months ending August 27. Adjusted pre-tax profits decreased by 9%, but Paul noted strong trading momentum in the UK and Germany. He criticized government measures that provide relief to other parts of hospitality like pubs but not hotels, and warned against potential tourist taxes starting in 2028.

Written by AI on 2026-10-13, from this article's own text only (the story summary below draws on all the coverage).

AI analysis

Story summary

Dominic Paul, CEO of hospitality giant Whitbread, announced that the company is scaling back hotel investments in the UK due to higher taxes and labor costs from recent government budgets. Premier Inn, owned by Whitbread, operates 842 hotels globally and was planning expansions until tax hikes forced them to reconsider potential investments that would have created new jobs. While the Government introduced rates relief for pubs and music venues, it did not extend this benefit to hotels. The company reported a 9% drop in adjusted pre-tax profits to £287 million despite a 2% increase in total revenues to £1.57 billion over the six months ending August 27, compared to the same period last year. Additionally, regional mayors are set to gain authority to introduce tourist taxes on overnight stays starting from 2028, which Paul predicts would be detrimental for hotel businesses like Whitbread’s.

Written for “UK Hotel Tax Hikes” on 2026-10-31, grounded in this article and the 0 other(s) covering the same event.

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Henry Saker-Clark

91 article(s) here · 1 carrying a prediction

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Claims (11 extracted, 0 hedged)

Premier Inn owner pulled back hotel investments after tax hikes, says boss asserted

boss → pull → hikes

Dominic Paul, chief executive of the hospitality giant, said the industry has been “hammered” by higher taxes and labour costs linked to recent budgets. asserted

industry → say → budgets

“What we have seen in recent budgets meant that we have had cut potential investments in hotels, which would have created more jobs.” asserted

which → see → jobs

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. asserted

Government → announce → hotels

He added that potential tourist taxes will be “very unhelpful” for the group, which runs 842 hotels. asserted

which → add → hotels

Last month, Mr Burnham said he would give regional mayors the power to introduce a visitors’ levy on overnight stays from 2028. asserted

he → say → 2028

On Tuesday, Whitbread said it is nevertheless seeing “strong trading momentum” in the UK and Germany, despite pressure on consumer finances. asserted

it → say → finances

It reported that total revenues rose by 2% to £1.57 billion for the six months to August 27, compared with the same period last year. asserted

revenues → report → period

Meanwhile, adjusted pre-tax profits slipped by 9% to £287 million for the half-year, as it pushes ahead with a five-year transformation plan. asserted

it → slip → plan

Read More The company said it has completed plans to close its branded restaurants, hitting the Beefeater and Brewers Fayre brands. asserted

it → read → brands

It said it has already completed some hotel extensions and is pushing forward with planning applications to convert more former restaurant units into hotel rooms. asserted

it → say → rooms

Premier Inn owner pulled back hotel investments after tax hikes, says boss

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Claims (11 extracted, 0 hedged)