Premier Inn owner Whitbread PLC (LSE:WTB) said it is on track to achieve its full-year outlook, with its German business breaking even in the second half as inflation across its operations begins to abate.
It comes after the hotel group saw its sales jump by 1% in the first quarter, reaching £739, driven by improved trading in the UK and continued room growth in Germany.
In the UK, the group saw accommodation sales rise by 55% compared to pre-pandemic figures.
However, RevPAR (revenue per available room) was 2% behind last year and 38% ahead of 2020.
Food and beverage, which includes brands including Brewers Fayre and Beefeater, saw sales slightly down by 1%, with strong breakfast sales offset by softer performance in the branded restaurants.
In Germany, Premier Inn's sales increased by 15%, year-on-year benefiting from the growing maturity of the estate and room growth.
RevPAR increased to €57, while more established hotels achieved a RevPAR of €61, outperforming the midscale and economy market.
Dominic Paul, chief executive, said: "Our UK trading results strengthened during the quarter and we continued to grow accommodation sales ahead of the market.
“In Germany, we delivered another strong performance…Our cohort of more established hotels is continuing to outperform the M&E market.
“We remain on course to achieve the important milestone of reaching break-even on a run-rate basis during the second half of 2024.”