THE owner of Premier Inn and coffee shop chain Costa says it has continued its rapid growth after reporting buoyant results.

Whitbread says like-for-like sales increased by a better-than-expected 6.9 per cent in the 13 weeks to May 29, with hotel chain Premier Inn up 9.5 per cent as it benefits from signs of economic recovery across the UK.

Bosses said Costa grew sales by 4.5 per cent, despite tougher comparisons against a year earlier, while the Brewers Fayre and Beefeater restaurants division improved by 4.4 per cent.

Chief executive Andy Harrison said the group was well positioned for another good year as its brands continue to win market share.

Costa, which has 1,791 UK stores and has been the driving force behind the group's growth in recent years, opened a net 36 new UK stores in the quarter.

Whitbread said Premier Inn continued to win market share, growing total sales for the 13 weeks by 14.2 per cent and revenues per available (Revpar) room by 8.8 per cent.

Occupancy of 80.7 per cent was up 4.2 percentage points on a year earlier.

In the UK regions, Premier's total sales grew by 15.3 per cent in the quarter, with Revpar up 9.9 per cent and occupancy of 80 per cent.

Mr Harrison said: "Premier Inn and Costa have continued on their rapid growth trajectory, underpinned by strong customer demand."

Whitbread plans to add around 4,500 UK rooms and five joint site restaurants in the current financial year to February as it works towards a target of 75,000 rooms by 2018, compared with the current figure of 57,000.

Whitbread has plans to open a Premier Inn on a new cinema and leisure complex in Darlington.

The 80-bed hotel would form part of the Feethams Leisure development, on the site of the town's former bus station, which will also include a nine-screen Vue cinema.