 Whitbread runs the luxury Marriott Hotels brand in the UK |
Leisure group Whitbread has reported a jump in profits, despite weaker sales at its luxury Marriott Hotels chain. Whitbread, which also owns the Travel Inn, Beefeater restaurant and Costa Coffee brands, said full-year profits rose 13% to �240.8m ($430.7m).
However, the firm said Marriott was continuing to feel the effect of weak demand in the four star hotel sector.
Operating profits at the chain - which Whitbread runs in the UK - dropped 10%, while sales were down 0.3%.
'Further progress'
The UK company described Marriott's fortunes as a "gritty performance in a market that remains tough".
On a brighter note, the chain's occupancy numbers edged higher to 71.5% during the year.
Meanwhile, Travel Inn showed growth of 11%, while Whitbread's health club chain, David Lloyd Leisure, reported growth of 12%.
"The board expects further progress in the current financial year in terms of trading performance, organic growth and the more efficient use of shareholders' assets," the company said.
Shares in Whitbread - which have outperformed the FTSE 100 index by 5% over the past year - were up 13 pence at 754.25 pence in early trade.
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