Whitbread (LON:WTB) shares rose in early morning trading, after reporting a 3.2 percent rise in quarterly sales.

The group, which owns both the Premier Inn hotel and Costa coffee chains, said expanded hotel capacity and Costa store openings led to a boost in sales.

However, on a like-for-like basis the picture was less rosy, with company sales in the UK falling by 1.3 percent. This was driven by a 2 percent fall at Costa and a 0.9 percent fall at Premier Inn.

However, chief executive Alison Brittain remained positive.

“We expect to deliver in-line with expectations for the full year and we continue to make strong progress on our efficiency programme,” chief executive Alison Brittain said.

“Our new capacity has a short-term impact on like-for-likes but delivers good long-term sales growth,” she said.

Whitbread also confirmed that early steps had been taken to demerge Costa from the group, a move which had been announced in April.

Shares in Whitbread (LON:WTB) are currently up 1.31 percent at 3,944/00 (0850GMT).