9th Sep 2014 06:46
LONDON (Alliance News) - Whitbread PLC Tuesday said its sales were boosted in both the 11 weeks and 24 weeks to August 14, with its Premier Inn hotel chain continuing to win market share and its Costa Coffee business increasing sales across the board.
Total sales for the group in the 11 weeks to August 14 were up 13%, pushed higher by a 15% rise for the Premier Inn business and a 18% increase for Costa. Like-for-like sales at Premier Inn in the same period were up 9.2%, while Costa like-for-like sales rose 7.3%.
In the 24 weeks to August 14, Premier Inn's total sales rose 14% and Costa's were up 17%, helping Whitbread's total sales in the period up 13%.
The group's Restaurants arm saw more muted sales growth in the 11-week period, up 2.2%, but its Hotels & Restaurants business said total sales were up 11% in the same period.
The FTSE 100-listed hotels and restaurants group said Premier Inn continued to win market share in the 24-week period, with total revenue per available room increasing 8.7% and the number of rooms available rising 5.5%. Total occupancy for the chain in the period was up by 3.7 percentage points to 83.6% and total room nights sold was up 10% to 7.7 million.
Whitbread said it has opened 758 new rooms in the UK in the year to date and expects to open a total of 4,500 new UK rooms and five joint site restaurants in the full year.
At Costa Coffee, worldwide sales were up 15% to GBP602.4 million, with franchise sales increasing 14% to GBP236.7 million in the 24-week period. UK retail sales were up 16% to GBP325.4 million, while international sales rose 9.3% to GBP126.8 million, with 21% growth in its Asian sales.
Whitbread has opened 76 net new stores in the UK to date and plans to open around 300 net new stores and 600 Costa Express units in the full year.
Costa Enterprises, including the Costa Express coffee dispensing machine business, saw sales increase 19% to GBP151.5 million. The company now operates 3,915 Costa Express units.
The group also said its capital expenditure would increase to GBP500 million this year, up from the GBP400 million it expected in its first quarter interim statement, on the back of the acquisition of three further freehold hotel sites in London.
"Whitbread remains on track for another good year. Our strong brands continue to win market share, reinforced by ambitious organic network expansion," said Whitbread Chief Executive Andy Harrison.
By Sam Unsted; [email protected]; @SamUAtAlliance
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