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Whitbread – owner of the Premier Inn and Costa brands – has reported a growth in sales in the first quarter of its financial year, despite a ‘weaker than expected’ hotel market.
In its latest trading update for the 13 weeks to 2 June 2016, the company reported sales growth of 8%, compared with the same period last year. Like-for-like sales were up 1.8%.
During the quarter, Premier Inn’s total sales grew by 8% and like-for-like sales were up 2.1%, benefitting from a substantial hotel extension programme.
Despite this, Premier Inn like-for-like revenue per available room (RevPAR) declined by 0.5% and total RevPAR fell 1.2%. Occupancy at the hotel brand was down 1.5% on the same period last year to 79.1%.
Alison Brittain, chief executive, said: “Whitbread delivered total sales growth of 8% in the first quarter as we continue with a relentless focus on our customers, innovation and investing in our strong brands.
“Costa has started the year well and Premier Inn continues to win share, albeit in a weaker than expected hotel market.”
She added industry data has continued to show a soft hotel market in the UK, particularly in London.
In London, Premier Inn’s total sales grew 5.6% in the quarter, but like-for-like RevPAR was down 3% and total revpar was down 6% – diluted by the high number of rooms which the company opened in the final quarter of last year.
Meanwhile, the brand saw total sales in the regions grow by 8.5%, as like-for-like RevPAR was up 0.3% and total RevPAR fell 0.2% – diluted by the number of rooms opened.
