Pub and hotel operator Whitbread has posted a 3.1 per cent increase in revenue for the six months ending 27 August 2009 after Costa Coffee continued its recent strong performance.

The coffee shop chain saw a 20.6 per cent increase in revenue for the first half of 2009, compared with the same period last year, while growth at the Premier Inn hotel business remains stagnant due to a 9.2 per cent decline in RevPAR. Overall pre-tax profits for the company decreased by 10.4 per cent to £110.5m in the six-month period, although Whitbread said that it is confident it is well-placed to benefit when the economic climate improves.

Alan Parker, Whitbread chief executive said: "In the face of the toughest trading conditions for years, we have taken strong management actions to outperform the market and reduce costs. Encouraging progress has been made, which has continued into the second half of the year. "Whitbread's value for money brands have considerable appeal for today's price conscious customers. We remain confident about the outturn for the year, subject to any marked deterioration in the economic environment."