Budget hotel chain Premier Inn and Costa Coffee have driven a good start to the year at Whitbread (LON:WTB).
Whitbread said Premier had increased total sales in the 13 weeks to May 28 by 14.3% and like-for-like sales by 6.3%, with rooms available rising by 8.2%.
Costa boosted total sales by 17.2% and UK retail like-for-like sales by 5%. Sales in Costa's overseas business lifted 15.1%.
The group's restaurant business, which includes Beefeater and Brewer's Fayre, increased sales by 1.6% and same-site sales by 0.1%. It said that was slightly ahead of a soft pub restaurant market outside the M25.
Overall group sales rose 12.5% while like-for-like sales lifted 4.3%.
The group strengthened its funding by issuing a £450mln 3.375% bond due in 2025. It plans to invest about £700mln this year. Premier opened 333 UK rooms in the quarter, part of plans to open about 5,500 UK rooms in the full year.
Chief executive Andy Harrison, who is leaving in December and will be replaced by Alison Brittain, said: "Whitbread has begun the new financial year well, in line with expectations. Our leading brands continue to win market share. We're on track to achieve our ambitious growth milestones."