25th Feb 2015 08:03
LONDON (Alliance News) - Whitbread PLC Wednesday reported like-for-like growth of 5.8% in the fourth quarter of its financial year, as its Premier Inn hotels and Costa coffee chain continued to grow sales and win UK market share, leaving the group confident of delivering full-year results towards the top end of expectations.
The hotel and coffee-shop chain operator said like-for-like sales slowed slightly in the fourth quarter to 5.8% for the 11 weeks to February 12, having increased 6.0% in the third quarter, while total sales in the fourth quarter rose 14.3%. Total sales for the 50 weeks to February 12 as a whole were up 13.3%, and rose 6.5% on a like-for-like basis.
"Premier Inn and Costa continue to grow rapidly, winning UK market share, with Premier Inn also benefiting from the recovery in the UK regional hotel market. With this strong performance we expect to deliver full-year results towards the top end of current expectations," said Chief Executive Andy Harrison in a statement.
In the year to end February 2014, Whitbread reported a 13% increase in revenue to GBP2.3 billion, and an underlying pretax profit of GBP411.8 million up 16.5%.
In the final quarter of its most recent year, Premier Inn grew its total sales by 16.5%, with like for like sales growth of 8.6%. Total revenue per available room grew by 8.9%, while occupancy increased three percentage points to 71.1% and average room rates increased 4.3%.
"Our Restaurants grew total sales in the quarter by 1.6%, with good Christmas trading off-set by a softer January," the group said.
Whitbread said its Costa coffee chain had an "excellent" fourth quarter, with total sales growth of 19.8% and UK like-for-like sales growth of 6.9%. Like-for-like store transactions were up 4.4% in the final quarter.
Whitbread said it plans to open around 4,500 new UK hotel rooms and around 230 net new Costa stores worldwide in the next financial year to end February 2016.
"We expect our capital investment for this year to be around GBP575 million, growing to GBP700 million next year as we open more hotel rooms and invest in our freehold pipeline, particularly in London. This organic network growth and our strong return on capital should continue to create substantial shareholder value," said Harrison.
At the open Wednesday, Whitbread shares were up 2.4% at 5,225.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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