Whitbread, the owner of Premier Inn and Costa Coffee, has revealed a jump in revenue for the financial year to 27 February 2014, as London's economic recovery outstrips the rest of the UK.
The Whitbread share price opened 3.4% up to 4,190.00p after the company posted a 16.5% rise in full year profit.
"The UK economy inside the M25 goes from strength to strength," said Andy Harrison, chief executive of Whitbread.
"The issue is what's going on outside the M25. Real disposable income has fallen for the past few years although there are encouraging but early signs of improvement for the rest of the country."
Whitbread also unveiled a 13% surge in total revenue to £2.3bn as Whitbread Hotels and Restaurants profits jumped 11.2% to £348.1m.
Costa Coffee profits were also up 21.9% to £109.8m.
"This is another set of good results. Once again strong cash flow funded the necessary capital investment for our growth engines, Premier Inn and Costa, to increase their share of the market," said Anthony Habgood, chairman at Whitbread.
"We have recommended an increase in the full year dividend of 19.9% while maintaining a prudent balance sheet structure. I am confident that the brand strength of Premier Inn and Costa will continue to fuel the Company's growth into the future."