Premier Inn is claiming to be “winning market share” from its hotel competitors in both London and the rest of the UK.

Whitbread, which owns the budget hotel chain as well as Costa Coffee, said that Premier’s sales rose by 14.7% year-on-year to £570.5 million for the six months to the end of August.

Premier also recorded like-for-like sales growth of 9.6% for the six months with the occupancy rate rising by 3.7 points to 84%. Premier also saw revpar increase by 8.8% over the same period.

The budget brand currently has around 56,000 rooms in 681 hotels, up from 53,000 rooms a year ago. Premier plans to open 4,500 new rooms in the UK during the current financial year which runs to the end of February 2015, with another 5,500 beds expected to be added in the 2015/16 financial year.

Whitbread chief executive Andy Harrison said: “We continue to win market share in both London and the UK regions.

“Through investing in better rooms for our customers, growing the strength of our network, churning a small number of lower quality hotels and implementing an enhanced refurbishment cycle, we have further reinforced our competitive position and improved our customer experience.”

Premier benefited from an 11% rise in sales in London as available rooms increased by 9.8% and occupancy reached 88.9%.

The brand also saw sales in the rest of the UK shoot up by 15.6% with occupancy rising 4.2 points to 83.3% “assisted by an improving regional economy”.

Harrison added: “The London hotel market is an important focus and we aim to roughly double our London rooms from 9,189 to around 18,000 by 2018. We have made good progress, with a committed pipeline in London of around 5,500 rooms.

“We will launch our first Hub by Premier Inn hotel in St Martin’s Lane, London this November and plan to open around 2,500 hub rooms in London by 2018. The total committed pipeline for Hub has grown to 2,157 rooms with nine hotels in London and three hotels in Edinburgh.”

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