The market is skittish about the outlook for the listed hotel operators. There are hints that growth rates are slowing after the initial post-pandemic boom, with Dalata Hotel Group (DAL) announcing last week that its key revenue per available room (revpar) metric was set to fall 4 per cent year on year for January to April. The update prompted shares to drop by 9 per cent. Meanwhile, UK industry tracker STR showed that revpar plateaued across the sector in the week to 20 April and occupancy was a lacklustre 78 per cent.
- Gaining market share
- New food and drink plan
- Record return on capital employed
- Progress in Germany
- Slowing growth after post-pandemic boom
- Tough start to new financial year
Investor nervousness is also reflected in the share price of Premier Inn owner Whitbread (WHB), which has fallen by more than 10 per cent since the start of the year. Given the group’s core business has just delivered record annual profits and cash flow, however, and has a new strategy for its food and beverage arm, it’s possible that pessimism has been overdone.