Whitbread to Merge its Hotels and Restaurants

By Alan Lodge

- Last updated on GMT

Related tags: Cent increase, Like-for-like sales, Inn

Leisure giant outlines plans to merge its hotel and restaurant businesses in an effort to save the company £25million next year.

WHITBREAD has announced it is to merge its restaurant and hotel businesses in a bid to save the group £25m in 2009/10.

As it posted a 5.7 per cent increase in like-for-like sales, the leisure group also outlined plans to outsource its logistics operations, claiming the negotiations are already underway with an identified supplier.

The changes to the company structure will take place over the course of the next year - incurring an exceptional cost of £35m which will be charged in 2007/08 and 2008/09

Hotel chain Premier Inn reported a 10.5 per cent rise in like-for-like sales in the 50 weeks to 14 February, Costa coffee was up 6.3 per cent and restaurants rose 0.8 per cent.

Chief executive Alan Parker said: “These results show that trading in our businesses has been resilient and we continue to perform well.".

Full year results to 28 February are anticipated to be in line with forecasts.

Related topics: Business

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