Costa Coffee sales perk up Whitbread as hotel market remains weak

Premier Inn owner Whitbread has seen sales at Costa Coffee bounce back, but said conditions remain difficult for its hotels and restaurants.

The group cheered a "good start" to its financial year for the coffee chain as it posted a 2.6% rise in like-for-like sales for the 13 weeks to June 2, marking a recovery after sales were hit in the previous quarter.

It said Premier Inn like-for-like sales lifted by 2.1% in a "weaker-than-expected hotel market", while comparable sales edged 0.2% higher across its restaurant brands Beefeater, Brewers Fayre, Table Table and Taybarns.

Like-for-like sales across the group rose 1.8%, while total sales were 8% higher.

Alison Brittain, chief executive of Whitbread, said: "Costa has started the year well and Premier Inn continues to win share, albeit in a weaker-than-expected hotel market.

"Although it is early in our new financial year, and despite current market conditions, with the benefit of our cost-efficiency programme we remain confident of making good progress for the full year."