The hotel firm behind Premier Inn has said it is “extremely disappointed” as it warned it will face up to £50 million in extra costs due to the Budget.
Hospitality giant Whitbread said it is among companies facing a “large increase” in business rates payments after changes announced on Wednesday.
In the Budget, the Chancellor announced changes to how business rates – the tax affecting commercial properties – will be calculated, including a new multiplier from next year.
After the initial Budget announcement, the Treasury published new rateable values for properties, which will affect how much firms pay.
Whitbread said many of its hotels have had “significant increases” in their valuations, which will come into effect from April.
It said it is “still finalising the precise details” but expects a hit of between £40 million and £50 million in its 2026/27 financial year.
Its performance for the current financial year has not been impacted and is on track with previous guidance.
Shares in the company slid by 8% early on Friday afternoon.
Chief executive Dominic Paul said: “We are extremely disappointed with the outcome of this week’s UK Budget which will have a significant impact on our business and the wider hospitality industry.
“However, we have a strong track record of responding to inflationary headwinds by adapting our business and over time we are well placed to mitigate their impact through careful management of our cost base and the delivery of significant cost efficiencies.
“To help mitigate the estimated impact of these changes, we will deliver accelerated cost efficiencies of £60 million in full-year 2026/27.”
