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Premier Inn boosts Whitbread sales

27 February 2014 by
Premier Inn boosts Whitbread sales

A strong performance from its Premier Inn hotel brand has helped Whitbread grow its group like-for-like sales by 4% for the 50 weeks to 13 February 2014.

In a trading update, the company said it was on track to deliver its full-year results at the top end of expectations.

Premier Inn saw like-for-like sales rise 4.7% over the 50-week period, while they were up 8.3% over the 11 weeks to 13 February. Total sales were up 13.3% over the 50-week period and 15.2% over the 11 weeks.

Coffee brand Costa also performed strongly with a like-for-like sales increase of 5.8% for the 50 weeks, and 7.3% over the 11 weeks.

Restaurants, many of which are attached to the Premier Inn hotels were up 1.3% during the 50 weeks, and 6.6% across the 11-week period.

Andy Harrison, chief executive of Whitbread, said: "Whitbread delivered a strong fourth quarter, with total sales growth of 14.0% and like for like sales growth of 6.8%, driven by a particularly good Christmas trading period and, to a lesser extent, favourable weather comparatives in January.

"Premier Inn grew total sales by 15.2% and like for like sales by 8.3% in the fourth quarter, with a 5.7% increase in rooms available. We grew total revpar in London and the UK Regions by 7.0% and 9.6% respectively. We continue to invest in our product quality and the Premier Inn brand with the launch of "our best ever bed" campaign. This is a central pillar of our enhanced refurbishment programme. The performance of Whitbread Restaurants continued to improve and benefitted from the absence of snow with like for like sales growth of 4.4% in the quarter. We welcomed some 92,000 guests to our restaurants on Christmas Day with sales up 5.8%.

"Costa had an excellent fourth quarter with total sales growth of 18.2%, driven by 312 net new store openings in the year and 7.3% UK like for like sales growth. Our Christmas campaign was well received, with like for like store transactions up 6.1% in the quarter."

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