Pubs and hotels group Whitbread said membership of its David Lloyd Leisure fitness clubs had fallen although the brand continued to deliver "creditable" sales growth.

Whitbread said there had been a "dip" in membership renewals at some of its older clubs, that opened three or more years ago, in the 65-strong chain around the UK and continental Europe.

The company operates four such clubs in the Midlands, two in Solihull, one in Great Barr, Birmingham and one in Bromsgrove.

A spokesman for the group said the chain was facing increased competition in some parts of the UK.

He said: "We have had a very strong run over the last four years, but now we have started to see this level off a little bit. It is not a crisis, it is just a blip, and it is still a profitable business."

Retention of members had dipped about one per cent from last year's total of 74 per cent.

Sales in the 50 weeks to February 17 grew by 3.8 per cent at the leisure club arm of the group.

In January, the group was forced to dismiss speculation that it planned to demerge David Lloyd, which started off as a single fitness club near Heathrow Airport in 1982.

It said at the time that the leisure chain was an "excellent business" that it would continue to invest in.

Whitbread's other brands include the Marriott and Premier Travel Inn hotels and its Brewers Fayre and Beefeater pub chains.

In a trading statement yesterday, the group said its total sales growth in the first 50 weeks of the year to February 17 had been 7.7 per cent.

Like-for-like sales were 2.9 per cent up against 2.7 per cent

at the same time last year.

Premier Travel Inn had experienced an "outstanding" year, with second half likefor-like sales ahead of a very strong first half.

Whitbread said it had achieved the integration of the former Premier Lodge and Travel Inn operations into one 457-strong chain on-time and within budget.

Marriott had grown organic sales in a gradually improving trading environment for full service hotels, Whitbread said.

Trading in the group's pub restaurants in the second half had been stronger, with a particularly encouraging performance by Beefeater, it said.

The spokesman said the roll out of the new format - which included new menus and refurbished premises - had proved particularly popular in the West Midlands.

The Plough in Shirley and The George in the Tree in Balsall Common were among the first to benefit from the programme which is being developed in all the venues in the 156 strong estate.

The spokesman said: "It is providing good, simple grilled food to bring in a new generation of diners. It has proved popular so far."

Brewers Fayre continued to grow steadily, although the performance of the Brewsters chain remained disappointing.

It said another good year for Costa Coffee had led the performance of its high street restaurants, while strong outlet growth in both Pizza Hut and Costa had driven total sales across the division.

In October, it posted a nine per cent rise in half-year profits before tax and exceptional items to £147.4 million.

Chief executive Alan Parker said: "With sales growing faster than in recent years, we remain confident for the outlook of the group."