UPDATE 2-Costa Coffee owner ramps up expansion plans as CEO departs

* FY profit up 18.5 pct to 488 mln stg

* Expansion plans increased for Premier Inn, Costa

* CEO Harrison to retire by Feb 2016

* Shares down 1.5 pct (Adds CEO, analyst comment, shares)

By Neil Maidment

LONDON, April 28 (Reuters) - The boss of Costa Coffee andPremier Inn hotels operator Whitbread on Tuesdayannounced plans to leave by February next year, as the companyposted another surge in profits and stepped up its expansiontargets.

Whitbread's stock market value has grown from 2.5 billionpounds ($3.8 billion) to almost 10 billion pounds since AndyHarrison joined from easyJet as chief executive in September2010, as it tapped demand from cost-conscious customers foraffordable hotels and takeaway coffee.

"I've been a chief executive of three different companiesnow ... and it's just time to do something that's a bit lessdemanding," said Harrison, who will become chairman of Britishhomewares retailer Dunelm on July 7.

Britain's biggest hotel and coffee shop operator saidunderlying pretax profit for the year to Feb. 26 was 488.1million pounds, up 18.5 percent on a year ago and ahead ofanalysts' average forecast of 478.7 million.

Total revenues rose 13.7 percent to 2.6 billion pounds, withsales at UK Costa stores open over a year up 6 percent and up9.1 percent on the same basis at Premier Inn.

To further capitalise on demand, Whitbread increased itsexpansion targets for both businesses, with greater exposure inLondon a key focus for Premier Inn and overseas sales at Costaexpected to grow from a quarter to a third of total sales.

Shares in the FTSE 100 firm, which hit an all-time high of5,475 pence on Monday, were down 1.5 percent at 0803 GMT.

"Overall, numbers are ahead of forecast, the group has madea good start to the year and growth milestones have beenextended but the market may be unnerved by Mr Harrison'sdeparture," Cenkos analyst Simon French said, tipping CostaManaging Director Chris Rogers to become CEO.

Whitbread said it would aim to have 85,000 Premier Inn UKrooms by 2020, up from its previous target of 75,000 by 2018 andagainst 59,138 rooms currently. That target will be boosted bythe rollout of its compact city hotel concept 'Hub', while thebrand is also growing its international arm.

The group also pushed up its sales target for Costa to 2.5billion pounds by 2020 from a previous 2018 target of 2 billionand versus 1.4 billion now, as it opens more UK stores andexpands in China and into continental Europe.

Whitbread hiked its full-year dividend by 19.4 percent to82.15 pence a share.

($1 = 0.6563 pounds) (Editing by Kate Holton and Mark Potter)