Premier Inn owner Whitbread has said forward bookings are stronger than last year, on the back of positive leisure demand.
It came as boss Dominic Paul said trading “improved” over the latest quarter despite pressure on consumer finances.
The group saw total sales increase by 2% to £727 million for the 13 weeks to May 28, compared with the same period a year earlier.
Positive trading across Premier Inn in the UK and Germany was partially offset by a slump in food and drink sales caused by the closure of restaurants.
Whitbread is pushing forward with a five-year growth plan which has seen it shift away from the group’s branded restaurants.
As a result, the group said in April that it would shut its remaining Beefeater and Brewers Fayre restaurants as part of a restructuring which would hit around 3,800 jobs.
Bosses said the firm is “executing each element” of the growth strategy “at pace” to help focus on its hotel operations.
Premier Inn UK saw accommodation sales increase by 3%, with total revenue per available room (RevPAR) rising by 2% year-on-year.
It said this benefited from a “strong” performance in London, where sales were 7% higher.
Mr Paul, chief executive of the hospitality group, 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.
“Strong leisure bookings mean that our forward booked position is ahead of last year and we remain confident in the full-year outlook.”
Shares in the company were 1.5% lower in early trading.
