Leisure group Whitbread has put its faith in the effects of an early end to war after what it called a "robust performance" in March and April.

Along with rivals, Whitbread's upmarket Marriott hotels chain suffered tough conditions in the four-star market last year in the wake of September 11 and uncertainty in the Middle East in the early part of this year.

But while Marriott saw like-for-like sales decline by 4.2 per cent in the eight weeks from March 2 this year - as the war in Iraq was taking place - Whitbread's budget hotels chain Travel Inn saw sales grow four per cent.

Strong performances from Travel Inn and David Lloyd Leisure clubs helped underlying operating profits go up ten per cent to £275 million in the year to March 1.

Travel Inn saw profits grow 11 per cent in the full year while David Lloyd Leisure achieved a 26 per cent rise in operating profits.

But Marriott's full-year operating profits were flat at £71.6 million, which the group described as a "considerable achievement" in the face of a depressed market for four-star hotels.

Chief executive David Thomas said the growth in the first eight weeks of the new financial year demonstrated the strength of the Whitbread brands.

He added: "I am hopeful that the early end to the Middle East conflict will be beneficial both to consumer confidence and to the outlook for our markets - particularly in four-star hotels."

Chairman Sir John Banham said the figures endorsed the group's decision to slim down its operations to focus on the leisure market, a strategy which led to the demerger of its pubs business in May 2001.

Its remaining pubs-based businesses, which includes the Brewers Fayre pub-restaurants and the Beefeater chain, saw total sales grow 1.2 per cent to £583 million in the year.

The Brewers Fayre estate saw like-for-like sales grow four per cent while Beefeater's sales edged up by 0.8 per cent.

In line with plans announced last year, Whitbread said agreements had been reached on the sale of 34 out of 51 Beefeater restaurants earmarked for disposal.

It has also seen encouraging results from trials of new trading formats at six Beefeater sites.

Bottom line pre-tax profits were £202.8 million compared to £7 million a year earlier, a figure which was dragged down by £206.4 million of exceptional costs, largely resulting from the demerger of the pubs business.

Exceptional costs then also included a £146.5 million goodwill writedown on Pelican, the business Whitbread sold last year, which included the Bella Pasta and Cafe Rouge restaurants.