The boss of Premier Inn owner Whitbread said it was ‘in a good position for this summer’ as sales and bookings rose.

Dominic Paul said a rise in air fares, fed by the Iran war, could push Britons to holiday in the UK, where it makes nearly 90 per cent of its revenue. 

It has been trying to fend off pressure from activist investor Corvex, and is wrestling with a tough UK environment and higher business rates. Yesterday, the hotel operator said like-for-like sales rose 2 per cent in the 13 weeks to May 28.

Forward bookings in the UK and Germany were ahead of last year, giving it confidence in its outlook. Paul said: ‘We delivered a strong and improved performance in the quarter.’

In April, Whitbread outlined plans to axe 3,800 jobs, overhaul restaurants and sell some hotels to make £250million in savings in five years after the last Budget hit hotels with sharp increases in business rates.

But Whitbread said its total group sales rose 2 per cent to £727million. Positive performance at its hotel business was partly offset by falling sales in its UK food and beverage arm.