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