Premier Inn sales are up as customers take advantage of its 'value for money' offer, Whitbread said.
The group, which also owns Costa Coffee, Brewers Fayre and Beefeater, said trading over the last 39 weeks to November 27th has been "robust" although growth softened last month.
Premier Inn like-for-like sales were up 8.5 per cent, Whitbread said, as business users switched to budget hotels.
"In particular, the Business Account continues to attract new customers, with new users up 16 per cent and total sales via this channel up 33 per cent. We remain on track to open at least 4,000 rooms in 2008/09," chief executive Alan Parker said.
The group's restaurants also performed well, with like-for-like sales rising by 5.9 per cent over the period, driven by value-for-money offers, Whitbread said.
However, Whitbread also confirmed it would be cutting back on investment in light of the economic conditions.
Capital expenditure over the next financial year will be limited to around £200 million compared to £300 million in 2008/09.
Whitbread shares rose on the results, and were up 6.63 per cent by 12:15 GMT.
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