Premier Inn owner Whitbread PLC (LSE:WTB) said it is positive on its full-year outlook as the hotel chain operator reported an uptick in first-quarter sales.
Total sales were up 19% in the three months to 1 June 2023, and up 15% on a like-for-like basis, according to a statement.
Accommodation sales in the UK grew by 18%, driven by strong consumer demand, especially in London.
Whitbread said it opened 348 new rooms across the UK and Ireland and expects to open up to 2,000 more by the end of the year.
Performance in Germany was led by its cohort of 18 more established hotels, it said, with revenue per available room (RevPAR) increasing to €63 from €44 across these locations, and to €55 from €35 across its entire German estate.
In total, RevPAR was up 16%.
"Our business is in great shape and trading well,” said chief executive Dominic Paul.
Strength in Whitbread’s overall performance and forward booked position, which is ahead of revenue in the UK last year, has increased its confidence in delivering strong first-half results.
“Given the lack of branded supply growth and permanent decline in the independent sector, I am confident that our business model will continue to deliver as we strengthen Premier Inn's position in the UK, unlock our potential in Germany and maximise long-term returns for our shareholders,” Paul added.