Investing with confidence 2014

Investing
with confidence 2014
Liverpool
Welcome to
Premier Inn
and our parent company Whitbread PLC
Premier Inn is the UK’s
largest hotel business
Today, we have more than 54,000 bedrooms
across 650+ hotels. All are in great locations.
We are on target to open more than 4,500
new bedrooms across 35+ hotels this financial
year – that means we are opening a new hotel
approximately every ten days. And with a secured
pipeline of 10,000+ rooms we will continue
to grow the business as we head towards
our target of 75,000 bedrooms by 2018.
But we’re not taking our foot off the gas and
to get there we will need your help. This is
especially true in London where growing our
market share continues to be our key commercial
focus. As well as delivering our traditional
Premier Inn format, we are also very excited
about ‘hub by Premier Inn’ – a new generation
of compact, city centre hotels with ingenious
design and smart technology, launching in 2014.
Flexible and financially strong
Premier Inn continues to outperform its
competitors and win market share. We
consistently deliver solid like for like sales and
profit growth, double digit revenue growth
and we maintain a very strong balance sheet.
Our Whitbread-backed covenant gives our
property partners confidence in our developments
and the advantages that come with working
with the UK’s leading hotel chain. And our
leasehold opportunities deliver great yields.
We can create and execute value-enhancing
deals, whether leasehold or freehold, and
are constantly reinvesting in our product.
And now we have two great products to
offer: Premier Inn and hub by Premier Inn.
As you can see, we’re driving for growth.
Please get in touch if you have a site or
a proposition for us. It’s partnership that
makes the Premier Inn success story happen.
Mark Anderson
Commercial & Property Director,
Whitbread Hotels and Restaurants
Our history
Founded in 1742, Whitbread PLC is the power behind some of the UK’s
most successful hospitality brands and employs more than 43,000 people
worldwide, serving more than 22 million guests every month.
Whitbread PLC is a family of brands, all of which are in the business of
providing excellent hospitality at affordable prices:
1742
2007
Founded when Samuel Whitbread
begins brewing beer
Whitbread announces hotels to be
rebranded as Premier Inn
1868
2007
Bottling is introduced and Whitbread
becomes a national brand
Premier Inn opens 500th hotel in Bournemouth
1974
First Beefeater opens
1987
2008
First international Premier Inn opens in Dubai
2010
First Travel Inn opens
New Chief Executive, Andy Harrison,
joins Whitbread
1995
2011
Whitbread acquires Costa Coffee
Premier Inn opens 600th hotel
in Stratford-Upon-Avon
2001
Sale of Pub and Bars for £1.63bn
2004 to 2007
2012
Premier Inn opens largest hotel at
London Gatwick Airport
A new strategy to focus on value for money
wholly-owned Whitbread brands. Sale of franchised
and non-core brands such as Marriott Hotels,
Pizza Hut, T.G.I. Friday’s and David Lloyd Leisure
2012
2004
2013
Whitbread becomes the UK’s largest hotel
chain with the acquisition of Premier Lodge
Premier Inn reaches 54,000
bedrooms in UK and Ireland
Premier Inn reaches 50,000 bedrooms
in the UK and Ireland
2014
‘hub by Premier Inn’ launched
Bath
London, St Pancras
Our Premier Inn offer
Premier Inn delivers strong total occupancy and is growing room
numbers. We offer our customers greater choice compared to
our competitors. Key to this success is the strength of our hotel
network, the power of the Premier Inn brand, our dynamic pricing
system, and the quality and consistency of the Premier Inn guest
experience, backed up by our Good Night’s Sleep Guarantee.
To reinforce this success we are continually investing in our
product and refurbishing and maintaining the Premier Inn estate.
Our product
• Average net room area: 18 to 24m
Our requirements
• 60 bedrooms 25,000ft2 / 2,322m2
2
• Average gross room area: 30 to 45m
2
• 80 bedrooms 35,550ft2 / 3,292m2
• Up to 600 rooms per hotel
• 100 bedrooms 41,000ft2 / 3,818m2
•Hotels with strong design and
architectural credentials
• 120 bedrooms 46,000ft2 / 4,222m2
•With a joint site restaurant circa
6,000ft2 / 557m2 extra
Our formats
London Croydon
Standalone Premier Inn
• New build – freehold or leasehold
•Standalone or part of
mixed-use schemes
• Conversions – eg office to hotel
•Typically large town or
city centre locations
Fleet
Small format
• Smaller format for 50+ bedrooms
• Adjusted f&b offer
•Suits above retail, high street and
tight mixed-use schemes
• Makes smaller sites viable
Weymouth
Joint Site Premier Inn
•Premier Inn with adjoining
branded restaurant
• Larger footprint sites
•Suits smaller towns and
edge of town
• Typically 1.5-2.5 acre sites
Strength in
our numbers
Premier Inn is the UK’s largest hotel chain with over 650 hotels,
a dominant force in the hospitality industry with the financials to
match. Through our established reputation and strong covenant
we offer attractive deals to property developers and investors.
As just one example, the strength in our numbers and our covenant
have been key attractions for Reef Estates with whom – in the space
of just three years – we have secured delivery of more than 600
bedrooms across seven new leasehold sites in prime locations in
the South. These include our 120-bedroom hotel in Cambridge,
which is due to open later this year; Winchester (101 bedrooms),
Eastbourne (65 bedrooms) and Northampton (104 bedrooms).
Other sites include Ipswich, Maidstone and Newmarket.
Whitbread
Premier Inn hotels
•Whitbread PLC is a well-regarded FTSE
100 company with a strong balance
sheet and sound financials
Our strong financials have attracted investors on
individual hotel developments in prime City and
other target locations. In 2013, Royal London
Asset Management purchased the 183-bedroom
Premier Inn London City at Monument, leasing it
back to Whitbread for 35 years. Also in 2013, the
258-bedroom leasehold Premier Inn at London
Blackfriars, developed with LaSalle Investment
Management, was extended by 51 bedrooms to
309 bedrooms, establishing it as one of the largest
Premier Inn hotels in London.
•We consistently achieve good like for like sales and
profit growth, and double digit revenue growth
•Whitbread Group has a BBB
investment grade rating
•We continually measure our improvement
for investors by the following methods:
Brand expansion: this tracks the rate at which
we are expanding our strategic business units
•Premier Inn operates freehold or leasehold hotels
ROCE growth: this measures the effectiveness of
our capital expenditure decisions to ensure we
continue to spend our investors’ money wisely
•We offer investment grade leases of 25+ years
Profit growth: ensuring continuous growth in profits
•Our prime financial covenant yields sub 4.4%
•We offer quick and firm decisions
Why Premier Inn?
Whitbread and Premier Inn are recognised as market leaders
and have won many awards. Here are just a few:
•Favourite Hotel Chain
– Travel Weekly / Daily Mail 2014
•Best budget hotel brand
– British Travel Awards 2012
•Top 25 Best Big Companies to work for
in the UK – Sunday Times 2014
•Best leisure hotel chain
– British Travel Awards 2012
•Carbon Trust Standard for reducing carbon,
water and waste – Carbon Trust 2014
•Hotel chain of the year
– British Travel Awards 2011
•Best Travel and Leisure PLC
– Stock Market Awards 2013
•Occupier of the year
– Estates Gazette Awards 2011
•Best UK Economy Hotel Group
– British Travel Awards 2013
•World’s leading budget hotel brand
– World Travel Awards 2011
•Best Economy Hotel Group
– British Travel Awards 2013
•Budget Hotel Chain of the Year
– Business Traveller Awards 2013
•Top 25 Best Big Companies to work for
in the UK – Sunday Times 2013
•Best mid-scale hotel of the year
– Business Travel Awards 2013
Our award-winning success means we continue to partner
with some of the most respected and innovative names in the
business. We know the value of trusted relationships and our
track record as one of the UK’s longest serving hospitality
businesses brings credibility and professionalism to the table.
Here are just some of the companies we are pleased to call our property partners:
Our team
Our Acquisition Managers are always hunting for new sites and
opportunities. With 75,000 bedrooms to deliver by 2018, we’re scanning
the length and breadth of the UK & Ireland for the next deal.
If you’ve got a site, development or proposition that you think we could
help you with, please don’t hesitate to get in touch.
John Bates,
Head of Acquisitions UK & Ireland
john.bates@whitbread.com
07920 284185
Nick Johnston,
Acquisition Manager,
North West and North Wales:
nicholas.johnston@whitbread.com
07795 501986
Derek Griffin,
Head of Acquisitions
for Greater London:
derek.griffin@whitbread.com
07717 544366
Jonathan Langdon,
Acquisition Manager,
North West London:
jonathan.langdon@whitbread.com
07931 722532
Kevin Murray,
Senior Acquisition Manager, North:
kevin.murray@whitbread.com
07774 400041
Owen Ellender,
Acquisition Manager,
North East London:
owen.ellender@whitbread.com
07770 678627
Richard Pearson,
Acquisition Manager, Wales,
South West and East Midlands:
richard.pearson@whitbread.com
07920 284181
John Rumsey,
Acquisition Manager,
South London:
john.rumsey@whitbread.com
07824 608622
(including corporate and going concern enquiries):
Guy Kemsley,
Acquisition Manager,
South East and East,
guy.kemsley@whitbread.com
07747 767038
www.whitbread.co.uk
Whitbread Group PLC
Whitbread Court, Houghton Hall Business Park
Porz Avenue, Dunstable LU5 5XE
United Kingdom