Whitbread is cautiously optimistic about meeting its financial targets this year, and has so far seen revenue growth of 7.4% to £1.7b.
This is according to the half year financial results for the six months to 31 August 2017 for the Costa and Premier Inn owner.
Alison Brittain, Whitbread chief executive, said: "Despite the well known short-term economic uncertainty, our performance in the first half was good and we expect to meet expectations for the full year. Although we remain cautious on the current environment, we are confident that ongoing disciplined allocation of capital and focus on executing our plans will deliver long-term growth in earnings and dividends and a strong return on capital."
The report said disciplined cost management had enabled underlying profit growth of 6.7% to £328m, and that net debt had been reduced to £852m.
More than 2,000 new Premier Inn rooms opened in the UK in the first half of the year, and it says it is on track to have 85,000 rooms by 2020 with the majority of this pipeline now secure. The hotel brand saw revenue growth of 6.4% due to occupancy and room growth over the last six months, and a 9.9% total sales increase in London.
Through building new hotels, extending existing hotels, and further enhancing the operational model, Premier Inn expects to increase its market share from approximately 9% in 2016 to over 12% beyond 2020.
Richard Baker, Whitbread chairman, added: "I am pleased to see another good performance as we continue to invest in the compelling long-term opportunities available to our businesses."
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