Whitbread runs the luxury Marriott Hotels brand in the UK

Whitbread, which also owns the Travel Inn, Beefeater restaurant and Costa Coffee brands, said full-year profits rose 13% to £240.8m ($430.7m).

However, the firm said Marriott was continuing to feel the effect of weak demand in the four star hotel sector.

Operating profits at the chain - which Whitbread runs in the UK - dropped 10%, while sales were down 0.3%.

'Further progress'

The UK company described Marriott's fortunes as a "gritty performance in a market that remains tough".

On a brighter note, the chain's occupancy numbers edged higher to 71.5% during the year.

Meanwhile, Travel Inn showed growth of 11%, while Whitbread's health club chain, David Lloyd Leisure, reported growth of 12%.

"The board expects further progress in the current financial year in terms of trading performance, organic growth and the more efficient use of shareholders' assets," the company said.