FINANCE: Whitbread plans to target London freeholds as part of its ongoing expansion plan, which will see it increase its capital investment from £575m this year to £700m in 2016.
The Premier Inn and Costa Coffee owner plans to open 4,500 new UK hotel rooms and 230 new coffee shops worldwide this year, with a further 5,500 rooms and 250 coffee shops targeted the following year.
The increased appetite comes after the company posted a 5.8% increase in sales across the group in the 11 weeks to 12 February.
Premier Inn saw sales rise 8.6% in the period and was the strongest performing of Whitbread’s divisions. Its 50-week sales grew 9.1% like-for like aided by a 6.9% increase in available rooms.
Overall, revenue per available room increased by 8.6% in the 50 weeks to the 12 February.
Occupancy rates at Premier Inns grew 3.3% to 81.3% for the 50 weeks.
The like-for-like sales rise pushed the 50-week total up to 6.5% compared to the same period in 2013.
