Whitbread boosted by Premier arm

Leisure group Whitbread today said it was set for strong annual profit growth following a stellar year for budget hotel brand Premier Inn.

The hotel chain – advertised by comedian Lenny Henry – saw sales grow 9.6% on a like-for-like basis in the 39 weeks to December 2, while occupancy rates for the current financial year are expected to be 77%, up from 70% last year.

Whitbread, which also owns coffee chain Costa and restaurants including Brewers Fayre, is rolling out aggressive expansion plans across the group and said it remained on target to have 55,000 Premier Inn rooms in the UK by the end of 2013/2014.

Chief executive Andy Harrison said: “The positive momentum in our business gives us confidence that despite an uncertain outlook for consumer spending the out-turn for the full year will be in line with market expectations for strong profit growth.”