Hospitality group Whitbread has reported a 2% increase in total group sales to £727m during the 13 weeks to 28 May 2026, driven by positive trading performances at both Premier Inn UK and Premier Inn Germany.

UK accommodation sales rose 3% compared to the previous year, while revenue per available room increased 2%. Regional accommodation sales grew 1%, whereas sales in London increased 7% over the same period.

In Germany, total accommodation sales climbed 13% in local currency and 16% in sterling. The territory opened six new leasehold hotels during the quarter, bringing its revenue per available room for established hotels to €73 (£63.1).

However, this growth was partially offset by an expected 3% decline in total food and beverage sales.

The group noted that its food and beverage sales fell 5% in the UK, which met company expectations. The decline reflects the impact of its strategy to exit remaining branded restaurants to focus on pure-play hotel operations.

Looking ahead, the group said that in the UK, its forward booked position remains ahead of last year, supported by peak leisure bookings.

Dominic Paul, chief executive, said: “We delivered a strong and improved performance in the first quarter. In the UK, driven by the strength of our brand and commercial programme, total accommodation sales and RevPAR continued to grow ahead of the wider market. In Germany, demand strengthened through the quarter and with the opening of six new leasehold hotels, we drove double-digit accommodation sales growth and continued to outperform the wider market.

“Strong leisure bookings mean that our forward booked position is ahead of last year and we remain confident in the full year outlook. Whilst we expect the impact of business rates to remain in line with our previous FY27 guidance, we are continuing to press the UK Government for changes to FY28 and FY29.”

He added: “On 30 April, following a comprehensive review of all options to maximise value creation and deliver profitable growth, we outlined our New Five-Year Plan. We are executing each element at pace including: our proposed exit from all remaining branded restaurants in the UK to become a pure-play hotel business; refocused growth plans in the UK that will drive higher profits and returns; and accelerating cash flow and returns in Germany.

“With a favourable supply environment in the UK and Germany, we are focused on driving our best-in-class commercial and efficiencies programmes whilst at the same time reducing our capital intensity by £1bn, a combination that will increase margins and returns and generate £2bn of free cash flow available for shareholders by FY31.”