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UBS has lowered its price target for Whitbread PLC, the owner of Premier Inn, from 3,605p to 3,575p. The adjustment follows a lackluster start to the year for the UK hotel market, with revenue per available room (RevPAR) growth turning negative since early 2026. Analysts at the Swiss bank also reduced profit forecasts through 2028, citing persistent economic headwinds. Key factors contributing to the downgrade include stalling interest rate cuts and inflationary pressures linked to geopolitical tensions. Additionally, rising unemployment in the UK is expected to dampen consumer demand within the hospitality sector. This cautious outlook reflects broader challenges facing the UK leisure industry amidst a complex macroeconomic environment.
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