Whitbread has reported a 2.3% increase in like-for-like sales for the first 24 weeks of its financial year, driven by Premier Travel Inn, the group’s budget hotel brand.
Premier Travel Inn reported a 6.9% rise in like-for-like sales, on a 15.2% increase in total sales. Total sales over the 24 weeks to 17 August rose by 8.4% on the previous year.
During the 24 weeks the brand added 1,239 rooms. It also said that the integration of the seven Holiday Inn properties it acquired in March was proceeding as planned.
Costa Coffee also reported a strong start to the year, with a 5.7% increase in like-for-like sales, and total sales growth of 22.2%.
The branded coffee company said it had opened 77 new stores during the period, including 29 equity and 19 franchise stores in the UK, and 29 overseas - including its first stores in Jordan & Syria.
However, Whitbread’s pub restaurant business continued to decline, reporting a 1.3% drop in like-for-like sales, with a 0.9% increase in total sales.
The company said that the new management team put in place is developing plans to grow sales through its pub restaurant estate, with more details of these plans to be announced at its interim results in October.
In July the company announced the sale of 239 standalone pub restaurant sites to Mitchells & Butlers for £497m, as it looked to concentrate on joint sites comprising a Premier Travel Inn and a pub restaurant.
In the 24 weeks the company has opened new joint site and plans to open a further four in second half of the year.
At David Lloyd Leisure, like-for-like sales were up 2.0%, with total sales up 6.0%.
Total membership of UK like-for-like clubs increased from 311,857 to 374,136, while one new club was opened during the period, in Aberdeen.
Alan Parker, chief executive, said: “The sale of the stand-alone pub restaurants and the announced disposal of our share in Pizza Hut UK are further steps to reshape the Group and focus on our higher growth businesses.
“We are intent on continuing to improve operating performance and delivering on our growth plans for Premier Travel Inn and Costa; driving improved sales performance in our retained Pub Restaurant estate and maintaining the turnaround of David Lloyd Leisure.”
Parker also said the company would report a progress update on all these activities and on the TGI Friday's review and plans for the proceeds received from the sale of pub restaurants and Pizza Hut UK, with the announcement of its half-year results on 24 October.
