PREMIER Inn and Costa Coffee owner Whitbread said profits have lifted by nearly a fifth.

The company said Costa's success in the UK's coffee shop culture meant half-year profits increased 20.5 per cent to £52.4m.

Bosses added a recovery in the regional hotel market helped Premier achieve record occupancy of 84 per cent.

A Premier Inn will form part of a new multi-million pound Darlington leisure development, which will also feature a Vue Cinema and various restaurant and is expected to open by Christmas next year.

Across the Whitbread group, which also includes Beefeater and Brewers Fayre restaurants, profits rose by 18.5 per cent to £256m in the six months to August 23.

Andy Harrison, chief executive, said: "Premier Inn and Costa are going from strength to strength and continue to win market share."