Whitbread PLC (LSE:WTB) reported weaker trading in recent weeks as it turned in numbers for the first quarter to end-May.
In the UK, its Premier Inn hotel chain saw total accommodation sales in the first quarter fall 2% on last year, while revenue per available room (revPAR) was down 2%.
The FTSE 100 company said this was ahead of the wider 'midscale and economy' market by 1.7 percentage points on accommodation sales and 1.6pp on revPAR.
However, it is worse than the 1% decline in both accommodation sales and revPAR seen in the first seven weeks of the quarter, which was reported at the time of prelims in early May.
Food and beverage sales were down 16%, which it said was expected as chief executive Dominic Paul's growth plan looks to prioritise new rooms and to drive higher financial returns.
In Germany, the hotel chain saw accommodation sales increase 16% in local currency or 15% in sterling terms, while revPAR rose 12%, including 17% for more established hotels, which it was noted was also "significantly ahead" of the wider M&E market.
This is also slower than the accommodation sales growth of 23% in the first seven weeks.
Paul said the UK market backdrop was "challenging" and he highlighted the focus on "strategic priorities", pointing to progress with his growth plan and network expansion in both the UK and Germany, as well as targets for £60 million of cost efficiencies and £250-300 million of property disposal proceeds this year.
On the outlook, he said the UK forward booked position remains ahead of last year and while forward visibility "remains limited", he is confident of outperforming the market, with Germany's key target remaining to deliver profitability in this financial year.