Whitbread records sales increase of 13% in Q2

05-Sep-2011 - Last updated on 15-Mar-2024 at 14:54 GMT

Whitbread's Premier Inn brand saw revPAR increase by 4.3 per cent in Q2

Whitbread, the UK’s largest hotel and restaurant group, has seen sales for the second quarter this year increase by 12.9 per cent, making it one of the fastest growing consumer-facing companies in the FTSE100.

In the company’s latest trading update, Whitbread saw like for like sales for the 11 weeks to 18 August 2011 increase 4.8 per cent, driven by its two leading brands budget hotel Premier Inn and coffee chain Costa.

Premier Inn grew total sales for the quarter by 12.5 per cent, with like for likes rising by 7.1 per cent.

Occupancy across the brand’s UK and Ireland properties rose by 0.7 per cent to 79.2 per cent, which when coupled with a room rate increase of 3.4 per cent, saw revPAR grow by 4.3 per cent.

The results follow the sale and leaseback of seven Premier Inn properties and adjacent restaurants to LaSalle Investment Management for £53.8m.

While the hotels continued to demonstrate strength in the budget sector, performance at Whitbread’s restaurants remained challenging, with total covers for the period rising by just 0.8 per cent.

Andy Harrison, chief executive of Whitbread, who over saw 1,368 room and five restaurant openings during the period, said: “Premier Inn grew its total sales by 12.5 per cent and its like for like sales by 7.1 per cent, with growth across the country and a strong London market. Trading in our restaurants continues to be challenging, with customers being particularly price sensitive.”

Costa delivered a strong performance for the period with total system sales increasing by 22.8 per cent to £351.3m. The chain saw 145 new stores open in the first 24 weeks of the year to 18 August, and plans an additional 300 outlets worldwide in 2011/12.

Costa Express, of which there are now 155 in the UK, is progressing well with Whitbread planning the rebranding of 760 remaining Coffee Nation units.