Choice Hotels Europe (CHE) Group has said its half year results are likely to be £1m below expectations.

The company claims this is due to its decision to bring forward its £18.6m remodelling and refurbishment programme in the light of softer trading in the hotel sector. As a consequence, an average of 5 per cent of its rooms have been unavailable to guests during the six months to 30 June.

CHE Hotels also said that continuing work within hotels’ public areas had put guests off returning until work is completed.

In a statement the company said: “The board remains confident that as we continue to make the transition from being a defensive survivor to being a more aggressive force that appropriate management action is being taken to secure a sound platform for future profitable growth.”

CHE operates 58 owned, leased or managed hotels in the UK, France, Germany and Belgium under the Comfort Inn, Quality Hotel, Clarion Hotel and Sleep Inn brands.