Premier Inn growth stalls in tough market

Whitbread's budget hotel chain Premier Inn has seen its like-for-like sales fall 7.9% in the first quarter of the year.

The chain, whose advertising campaign is fronted by British comedian Lenny Henry, saw revenue per available room tumble 9.6% in a tough market.

However, Whitbread's pub restaurant division increased like-for-like sales 2%, while like-for-like sales at coffee chain Costa climbed 2.6%.

In a statement, Alan Parker, chief executive of Whitbread, said early action had been taken to reduce costs in the business, and said the group remained on track to deliver total savings of £25m by 2011.

The group also launched Premier Offers this month, with hotel rooms from £29 per room per night.

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By Gemma Sharkey

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