Chain claims business travellers trading down
Sales at Premier Inn, the UK's largest hotel company, were almost static in the six months to August 13.
In a trading update from owners Whitbread plc, it said that sales rose in the 24 week periods by 0.2%.
But it said like for like sales were down 7.7%.
Revenue per available room (revPAR) dropped by 9.4% during the period.
But Whitbread said there was evidence that business travellers were trading down from three- and four-star hotels to its budget properties "to find better value."
In a previous trading statement in June for the 13 weeks to the end of May, Whitbread reported a 0.2% drop in sales and a 7.9% drop in like for like sales.
During that quarter, revPAR fell by 9.6%.
Alan Parker, Whitbread's ceo, said the group which also includes pubs, restaurants and coffee outlets, had "achieved a consistent performance throughout the period with total sales up by 2.4%."
He said Premier Inn had maintained its sales "in a challenging trading environment."
Mr Parker added: "Premier Inn has outperformed the hotel sector with evidence of business travellers trading down from three- and four-star hotels to find better value.
"A significant benefit for customers is Premier Inn's network of locations - the largest in the UK - and expansion continues to plan with the opening of seven hotels and 1,167 rooms so far this year."
Whitbread is due to announce its half year results on October 13.
www.whitbread.com