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Whitbread today dismissed talk that the economy is recovering as it unveiled a slump in sales at its budget hotel chain Premier Inn.
The group's chief executive Alan Parker claims that Premier is growing market share in the midst of a dreadful period for the industry.
Like-for-like sales slumped 7.7% in the 24 weeks to 13 August, as business travellers and holidaymakers cut back.
“We have yet to see any substantive signs of improvement in the economic environment,” said Parker. “This recession has been the worst ever in my experience.”
In an effort to cut costs, Whitbread has imposed a freeze on staff pay and is delaying fresh recruitment.
One bright spot was the company's coffee business, Costa, which continues to grow despite the economic strife.
Sales are up 18.4% thanks to the opening of 88 new stores this year. Sales at established Costa outlets have risen 2.7%.
Whitbread is bullish enough about its own performance to say that it expects profits for the full year to be “at least at the higher end of current market expectations”.
Whitbead has also moved to bolster its board, unveiling the appointment of former Boots chief executive Richard Baker as a non executive director.
He replaces the outgoing Charles Gurassa.
Baker agreed the sale of Boots to the Italian billionaire businessman Stefano Pessina last year.
