Costa profits aid Whitbread
WHITBREAD yesterday reported profits that beat analysts’ expectations thanks to its coffee chain Costa, although its hotel business continued to suffer in the slump.
Whitbread, which owns hotel chain Premier Inn, reported a 2.7 per cent dip in pre-tax profits to £118.2m in the six months to 27 August, but this was still ahead of forecasts.
Costa posted a 72.6 per cent rise in operating profits to £12.6m, and reported a 20.6 per cent rise in total sales to £128.9m. Like-for-like sales at the coffee chain were up by 2.5 per cent.
In contrast the group’s chain of budget hotels, Premier Inns, suffered in the slump, as cash-strapped customers cut back on short breaks away.
Like-for-like sales at Premier Inn fell by 7.5 per cent, while revenue per available room (Revpar) – the key measure for hotel trading – was down by 9.2 per cent on a like-for-like basis.
But this drop still beats the rest of the hotel market, which has suffered a 12 per cent decline in Revpar.
Chief executive Alan Parker said: “Weekend occupancy is now starting to improve, but the recession has made things very tough. It hit the hotel industry hard earlier in the year.”
The group has recently launched “Premier offers” in a bid to attract cash-strapped holiday makers. Parker said this had resulted in a 60 per cent jump in new customers.