Whitbread PLC has reported its trading performance for the 13 weeks to 1 June 2017, showing a sales growth of 7.6%
Premier Inn continued to win overall market share with strong sales growth of 9.2% as it benefitted from a resilient hotel market and the contribution from the c.9,000 rooms that werre opened over the last two years, which are maturing well.
The brand's digital development team continued to innovate for its customers and launched its personalised business to business booking platform that helped to maintain direct bookings at 94% of sales. The total UK occupancy was up compared to the first quarter last year at 79.2%, at the same time as it increased its capacity.
Costa sales grew 8.7% with UK equity like for like growth of 1.1% and a good performance in its expanding travel and drive-thru channels. It is focused on executing on its initiatives, rolling out ‘Cold Brew’ in over 200 of the stores, and launching the latest summer Frostino and cooler drinks this month.
Costa also successfully introduced its new breakfast range towards the end of the quarter, with further new food ranges launching throughout the year.
Costa Express continued its expansion with 300 net installations during the quarter. In May, the brand officially opened its new Roastery giving the capacity to grow over the next 20 years and provide it with an industry-leading centre for coffee innovation and training.
Internationally, Premier Inn hotel in Frankfurt is performing well and the firm continues to develop its current committed pipeline of five hotels. Meanwhile, in Costa, it is seeing good progress in China with positive like for like sales growth. The group aims to accelerate the development of it international businesses in these attractive markets and continues to look for opportunities to grow more quickly.
In line with its property strategy, Whitbread completed the sale and leaseback of our 247 room hotel in Shoreditch, with proceeds of £51m representing a good yield of just under 4%, reflecting the strength of Whitbread's covenant. It expects the proceeds of around £100-150m from sale and leaseback transactions this year.
Whitbread's Chief Executive Alison Brittain (pictured) said, 'We have had a good start to the year, with first quarter sales growth of 7.6%, in line with our expectations. Our continued drive to grow and innovate in our core UK businesses, focus on our strengths internationally and build capabilities to support long-term growth, combined with our ongoing cost efficiency programme, gives us confidence that we will make further good progress this year.
'We have a clear plan to deliver growth in our existing estate and remain on track to open c.4,200 hotel rooms, 230-250 Costa coffee shops and install c.1,250 Costa Express machines this year.'