Premier Inn shares jump on sales

Whitbread shares jumped this morning after the group reported a rise in sales at budget hotel chain Premier Inns.

Like-for-like sales for the last 24 weeks rose 10.2 per cent compared to last year and Whitbread opened 14 hotels over the period.

Chief executive, Alan Parker, said: "Strong demand has been maintained in the commercial market, as corporate buyers are increasingly attracted to Premier Inn's value-for-money price and facilities."

The group also owns Costa coffee shops and a chain of restaurants, including Pizza Hut, Beefeater and TGI Fridays.

The restaurants grew their sales by 4.4 per cent, Whitbread said, helped by the addition of lower-cost options on its menus.

Costa, which has been expanding rapidly, also increased like-for-like sales by 3.7 per cent.

Since March, 108 units have been added overall, 74 in the UK and 34 overseas, including the first stores in Beijing.

"Whitbread has continued to be resilient in a period of consumer uncertainty," Mr Parker added.

"We believe this to be as a result both of the action taken in recent years to re-shape the group and our continuing emphasis on value for money."

Whitbread will announce its half year results on the October 14th 2008.

Shares in Whitbread jumped 4.46 per cent on the sales figures, to £11.70.