Whitbread, the owner of Premier Inn, reported stronger forward bookings compared to the previous year, driven by robust leisure demand. The company’s latest trading update, covering the 13 weeks ending May 28, showed a 2% increase in total sales to £727 million, despite ongoing pressure on consumer spending.

Chief Executive Dominic Paul described the quarter as “improved,” with positive performance recorded across Premier Inn locations in both the UK and Germany. However, this growth was partially offset by a decline in food and drink sales, which the company attributed to the ongoing closure of its branded restaurants.

As part of a strategic shift, Whitbread has committed to a five-year growth plan focused on expanding its hotel business while stepping away from its restaurant operations. In April, the company announced it would close its Beefeater and Brewers Fayre restaurant sites, a decision expected to impact approximately 3,800 jobs.

Paul emphasized that the company is executing the various aspects of this growth strategy “at pace” to sharpen its focus on hotel operations. Premier Inn UK recorded a 3% rise in room sales during the quarter, with London locations outperforming the broader market by registering a 7% increase.

The closures of Whitbread’s restaurant brands reflect the company’s intent to concentrate resources on its core accommodation services, aiming to capitalize on resilient leisure travel demand even as consumer finances face challenges.