Premier Inn owner Whitbread asks landlords for 50 per cent rent cut
Premier Inn owner Whitbread has asked its landlords for a rent cut of 50 per cent, as the ongoing coronavirus pandemic restrictions continue to affect trade.
Whitbread sent a letter to its landlords, urging them to “share some of the pain of lockdown,” according to reports.
Whitbread, which also owns Beefeater and Brewers Fayre brands, suffered huge losses in the first half of 2020, as revenue plummeted while its hotels were closed during coronavirus lockdowns.
In the six months ended 27 August, Whitbread posted a loss for the period of £660.5m – a drop of 483.6 per cent from £172.2m profit in the previous year.
In September the Premier Inn owner announced plans to cut 6,000 jobs – 18 per cent of its total workforce.
The FTSE 100-listed firm said the cuts were a “regrettable but necessary step to ensure that we emerge from the crisis with a lower cost base, a more flexible operating model and a stronger more resilient business”.
City PM has contacted Whitbread for comment.