The UK’s largest budget chain Premier Inn saw sales rise by 13% in the second quarter of the year to outperform the sector.
Parent company Whitbread said today that revenue per available room increased by 1.9% compared to a decline of 4.3% in the mid-scale and economy segments.
Chief executive Andy Harrison said: “As expected, the Olympics provided a modest benefit, primarily through increased room rate, with occupancy slightly down on last year.
“The cap on our London prices, to maintain Premier Inn’s positioning for great value, constrained revpar growth.”
Premier Inn has added 1,565 rooms in the year to date and is expected to open around 4,500 rooms and eight ‘joint site’ restaurants by the end of the year.
Whitbread, which also owns the Costa coffee shop chain, produced total sales up by almost 15% in the 11 weeks to August 16.
“Our brands have outperformed in a tough economic climate, with like for like sales growth of 4.2% and we have continued our network expansion at Costa and Premier Inn,” said Harrison in the trading update which did not include financial figures.
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