Dominic Paul travel tips

Premier Inn’s owner Whitbread said on Wednesday that a shrinking supply of budget hotels in the UK will strengthen its pricing power for years to come.

Premier Inn’s parent company, Whitbread, announced on Tuesday an “accelerating growth plan” for the budget hotel group, which owns about 800 hotels in Britain and dozens more in Germany.

Whitbread’s Premier Inn reported strong third-quarter occupancy figures for its 890 hotels, averaging 85 percent. Executives credited the performance to travelers becoming more cost-conscious during an inflationary period in its key markets of the UK, Germany, and the Middle East and thus migrating away from costlier hotel brands.

Premier Inn, the UK’s largest hotel chain, wants to expand its budget brand in the larger German market — partly through mergers and acquisitions.

Premier Inn owner Whitbread said on Thursday its first-quarter sales came in ahead of last year’s figures, supported by strong demand for travel and leisure and robust performances of its UK hotels.