Revenue per available room at the UK’s largest budget chain Premier Inn slipped in the last quarter on the back of a “substantial” hotel extension programme.

Occupancy was down by 1.5% to 79.1% in the 13 weeks to June 2 over the same period last year.

Total revpar of London hotels fell by 6% although total sales in the capital grew by 5.6%.

Regional sales grew by 8.5% with total revpar down by 0.2%, diluted by the number of rooms opened in the final quarter of last year.

Alison Brittain, chief executive of parent company Whitbread, cited industry data showing a “soft” UK hotel market, particularly in London.

She said: “During the quarter Premier Inn grew total sales by 8% and like for like sales by 2.1%, which benefited from our substantial hotel extension programme.

“Against a strong comparator Premier Inn like-for-like revpar declined by 0.5% and total revpar declined by 1.2%.

“This reflects the market environment, the expected dilution of the impact of the extension programme and the circa 3,600 new rooms added in the final quarter of last year, which will mature over the next few years.

“We are on plan to open 4,000-4,500 new hotel rooms in 2016/17.”