Whitbread - Re: WTB Stream Log - Beaufort note out this morning...

Beaufort note out this morning on research tree.. "Whitbread delivered resilient progress in the first quarter despite a weaker UK hotel market, particularly in London where RevPAR declined -1.6% for the total market and fell -3.5% for the Midscale and Economy market. While the major extension programme for Premier Inn has diluted its RevPAR due to higher number of rooms, it supported LFL sales and contributed to +2.1% growth, ahead of the consensus analysts’ Q1 estimate of +1.6%. Costa’s performance, on the other hand, was more encouraging as it advanced total sales by +11.5%, with LFL sales up +2.6% (consensus: +1.9%) recovering from the disappointing Q4 FY2015 result of +0.5% LFL growth that the Group blamed on lower footfall and an unusually warm winter. The Group remains on schedule to open 4,000-4,500 new hotel rooms, 230-250 Costa stores worldwide and has increased its target installation of Costa Express machines to at least 1,250 for this year. Although the Group has seen a tougher trading environment recently in China, international system sales (EMEI and Asia) grew by +11.5% to £88.3m. We believe the long term global opportunity for Costa and this remains one of the most exciting parts of the Group going forward. Whitbread’s share price movement in June to date largely replicates the overall FTSE100 performance, in which companies with significant overseas exposure nevertheless have suffered from cautionary sentiment in the face of polling anticipating a BREXIT majority."