(Alliance News) - Whitbread PLC on Tuesday said trading strengthened over the course of the first quarter of its financial year after a sluggish start, leaving it confident in its annual outlook.

In the 13 weeks that ended May 30, the Dunstable, Bedfordshire-based owner of Premier Inn said group total sales grew 1% to GBP739 million, driven by improved UK trading and continued progress in Germany.

"Having been 1% behind last year in the first seven weeks, our trading performance strengthened during the remainder of the quarter," Whitbread said.

Shares in Whitbread were up 4.6% to 3,037.00 pence in London early Monday.

Midweek business demand and peak leisure demand remained robust, but weekend demand at short-lead was slightly softer, particularly in London, the company noted.

At Premier Inn UK, trading performance strengthened during the quarter and accommodation sales were in line with last year and up 55% versus financial 2020. Total UK sales were GBP685.2 million compared to GBP686.5 million a year prior. Total revenue per available room was 2% behind last year but 38% ahead of 2020.

This meant that Whitbread's total accommodation sales growth was 0.6 percentage point ahead of the overall midscale and economy hotel sector in the UK and the RevPAR premium was GBP5.62 compared to GBP6.12 a year prior.

Food and beverage sales were 1% behind a year before, with strong breakfast sales driven by high occupancy in hotels, offset by softer trading in a number of branded restaurants.

At Premier Inn Germany, total accommodation sales were up 15%, with total estate RevPAR increased to EUR57 and more established hotels RevPAR at EUR61, outperforming the wider market.

Whitbread said it was confident in the full year outlook, underpinned by strong commercial programme and good progress on cost efficiencies.

Chief Executive Dominic Paul said: "Whilst the normal booking pattern means our forward visibility remains limited, our forward booked position is positive and we remain confident in the full year outlook. This reflects a more encouraging trading performance in the UK, our strong commercial programme and increased cost efficiencies, as well as good progress in Germany."

By Jeremy Cutler, Alliance News reporter

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