Whitbread enjoys an Olympic growth record

By SCOTT REID
Published on 07/09/2012 00:00

Whitbread, the leisure group behind the fast-growing Premier Inn and Costa brands, unveiled further growth yesterday as its businesses celebrated an Olympic boost.

The group estimated that the London Games had added about one percentage point to total revenue per available room (revpar), a key industry measure for hotel operators. The budget end of the sector has proven to be more resilient during the economic downturn amid a rise in staycation holidays and as businesses screw down on costs.

Whitbread, which also owns Beefeater and Brewers Fayre restaurants, reported total sales growth of 14.8 per cent in the 11 weeks to 16 August, an increase of 4.2 per cent when the impact of new sites is stripped out.

Premier Inn, which has more than 50,000 rooms across its estate, saw total room nights sold increase 10.2 per cent to 6.4 million, while Costa, which has in excess of 2,300 stores worldwide, recorded a total sales surge of 23 per cent to £432 million.

Panmure Gordon analyst Simon French said the second-quarter update was ahead of expectations although each division “benefited from ‘one-offs’ that boosted revenue growth”.

French added that the recent company voluntary arrangement approved by rival Travelodge’s creditors would turn the chain into a stronger competitor to Premier Inn.