Britain’s Whitbread is open to selling its Costa coffee chain or Premier Inn hotels and abandoning its original plan to spin-off the coffee business, according to a new executive pay scheme circulated to shareholders.

Whitbread said underlying sales at its Costa Coffee chain recovered over the last three months and its Premier Inn hotel brand continued to grow, sending shares in the company 3% higher.

Whitbread, an operator of hotels, restaurants, and coffee shops, stood by its expansion plans in the UK and international markets, after posting a near 12% rise in full-year profit.

Costa Coffee and Premier Inn owner Whitbread unveiled a hike in half-year profits but warned it will face up to an extra £20m a year in staff costs from impliementing the new UK living wage.

Costa Coffee chain owner Whitbread has announced a pay rise for its baristas which will put them on more than the new UK National Living Wage.

Whitbread one of Britain’s biggest employers, plans cost savings and will raise some of its prices to counter the substantial impact of enforced wage increases at its Premier Inn hotels and Costa Coffee businesses.