• Premier Inn shows budget resilience

Whitbread's Premier Inn confirmed the ongoing resilience of budget hotels this week by reporting a double digit like-for-like sales increase for the 24 weeks to August 14.

The company reported revpar up 5.8% with strong demand being maintained in the commercial market "as corporate buyers are increasingly attracted to Premier Inn's value for money price and facilities".

CEO Alan Parker said: "Whitbread has continued to be resilient in a period of consumer uncertainty. 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."

The overall group, including pub restaurants and Costa Coffee, reported like-for-like sales up 7.0% and total sales up 14.2%.

Analysts at the Royal Bank of Scotland (formerly ABN Amro) said in a note: "If Whitbread continues to deliver at these levels, we could end up having to push up forecasts for the year."

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