Costa Coffee is one of Whitbread's many High Street brands

Whitbread reported a 1% increase in underlying first-quarter sales, driven by 8.2% like-for-like growth at its Travel Inn budget hotels.

However, like-for-like sales at its pub-restaurants - Brewers Fayre, Beefeater and Brewsters - dipped 1%.

Its David Lloyd clubs showed virtually no growth, Whitbread said.

However, targeted marketing helped the health club chain stabilise its membership numbers after a recent decline.

Stagnant growth

Its High Street restaurants, which include Costa Coffee, Pizza Hut and TGI Friday's, also showed an absence of growth.

Whitbread's Marriott hotels, meanwhile, saw like-for-like sales grow by 4%.

Check Whitbread's share price

The board however said it was confident about future prospects.

In March, the group confirmed it was selling its Marriott UK hotels, a move which it said would raise more than �1bn ($1.9bn)

The company has declined to comment on speculation last month that private equity groups Permira and CVC were eyeing a takeover.

The mooted deal valued Whitbread at more than �3.5bn, and raised the possibility of a break-up of the firm.

Talk of a buyout helped Whitbread's shares recover from a slump.

The company had warned in April that profit margins were under pressure from higher wages, energy costs and rising business rates.