DUNSTABLE (dpa-AFX) - British hotel and restaurant group Whitbread Plc (WTB.L) Tuesday said its third-quarter sales increased 11.4 percent from last year, driven by its leading brands, particularly Costa. The company also said it is on track to deliver full-year 2011 results in line with its expectations.
In an interim management statement for the 13 weeks ended December 1, the company noted that its sales for the quarter, on a like-for-like basis, improved 2.4 percent from the previous year.
Costa sales grew 25.2 percent from last year, which has continued its good growth, both in like-for-like sales and store numbers, Whitbread stated. Costa like-for-like sales in UK equity stores were up 5.6 percent, with a 6 percent increase in transactions and the opening of 277 new stores.
Sales of Premier Inn and Restaurants increased 8.3 percent and 2.9 percent, respectively. Hotels and Restaurants showed a sales growth of 6.3 percent.
Premier Inn increased total room nights sold by 7.4 percent to 9.6 million and room rate was up 2.1 percent, which, combined with occupancy was up 0.8 percentage points to 80.3 percent. Like for like revpar (revenue per available room) increased 3.2 percent.
Andy Harrison, Chief Executive of the company said, 'Whitbread continues to deliver strong growth with total sales up 11.4% in Q3, driven by our leading brands, with Costa growing revenues by 25.2% and Premier Inn by 8.3%. Our like for like sales performance keeps us on track to deliver full year results in line with expectations.'
'Within the total hotel market, industry data shows that revpar growth in London and the provinces has virtually disappeared, with the London market showing broadly flat revpar and the provinces a marginal decline over the last six weeks,' Harrison added.
However, he said, Premier Inn continues to win share in both markets.
In addition, Whitbread stated that it will open 4,000 new rooms and 300 Costa stores this year, which it expects will create about 2,500 new jobs in the UK.
In mid-October, the company reported a higher first-half profit, as revenues grew about 11 percent driven by good sales growth in Premier Inn and Costa brands.
WTB.L is currently trading at 1,506 pence, down 70 pence or 4.44 percent, on the LSE.
Copyright RTT News/dpa-AFX
© 2011 AFX News
