Budget chain Premier Inn saw total sales rise by 11.6% in the three months to August 13.
This came as the number of rooms available increased by 7.9%, revenue per available room (revpar) rose by 3.9% and occupancy remained high at 87%.
Andy Harrison, chief executive of parent company Whitbread, said: “We are particularly pleased with our London performance where we grew total sales by 21.1%, driven by a 20.3% growth in rooms available, a 1.5% increase in total revpar, as well as an increase in our occupancy by 0.3% points to 92.2%.
“In the regions we delivered good total sales growth of 9.2%, growing rooms available by 6.2% and total revpar by 3.3% with good occupancy of 86.2%.
“This was against strong comparatives which benefitted from the Commonwealth Games and the Farnborough Airshow last year.”
The company plans to open around 5,500 UK rooms this year as part of a hotel pipeline which has grown to 14,106 rooms.
A total of 800 rooms have opened so far this year in the UK in addition to the chain taking a management contract on a 168-room property in Sharjah in the United Arab Emirates.
Harrison added: “We are developing plans to adopt the recently announced National Living Wage.
“We shall mitigate this substantial cost increase over time with a combination of productivity improvements, boosted by investment in systems and training, efficiency savings and some selective price increases.”
More details of the plans are due to be provided with Whitbread’s interim results on October 20.