Premier Inn Converts Pubs to Hotels to Offset Revenue Decline

Whitbread is pushing ahead with its room expansion strategy, despite missing profit targets and weaker UK demand.

Whitbread, the owner of Premier Inn, has doubled down on a strategy to convert its underperforming restaurants into profitable hotel rooms, as the company works to overcome revenue headwinds.

The UK-based hospitality company said Thursday it plans to add approximately 3,500 new hotel rooms by repurposing struggling food and beverage outlets. It expects the move will produce over £100 million ($130 million) in incremental profit by 2030.

According to CEO Dominic Paul, 70% of all planned projects to convert loss-making branded restaurants into higher-yielding hotel rooms are currently in the planning phase, and half of those have already been approved.

Construction is underway at many sites, and by the end of the 2026 fiscal year, between 500 and 700 new extension rooms