1 / 38

premier travel inn the acquisition of Premier Lodge and 19 pub restaurants

Whitbread PLC. premier travel inn the acquisition of Premier Lodge and 19 pub restaurants . July 2004. Alan Parker. chief executive, Whitbread PLC. Premier Lodge the transaction. £536.2m acquisition £505m acquisition of 132 hotels + 9 development sites

jalena
Download Presentation

premier travel inn the acquisition of Premier Lodge and 19 pub restaurants

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Whitbread PLC premier travel inn the acquisition of Premier Lodge and 19 pub restaurants July 2004

  2. Alan Parker chief executive, Whitbread PLC

  3. Premier Lodgethe transaction • £536.2m acquisition • £505m acquisition of 132 hotels + 9 development sites • £31.2m acquisition of 19 pub restaurants • Earnings enhancing in first full year (2005/6) • To generate 10%+ return on investment in second full year (2006/7)

  4. premier travel inn • Clear leader in growth sector • Platform for strong sales growth • increase occupancy in acquired hotels • reduce discounts and improve overall sales mix • Cost synergies

  5. premier travel inn • The UK’s biggest hotel brand • 461 locations* across the UK • 29,141 bedrooms* * Includes hotels committed for development but not yet built

  6. Number of bedrooms 29,141 30,000 25,000 20,000 14,213 15,000 9,304 10,000 5,503 5,000 0 Premier Travel Travelodge Express by Ibis Inn Holiday Inn Travel Inn Premier Lodge Pipeline premier travel inn Source: Whitbread analysis of published company data

  7. premier travel innfast integration • Detailed integration plans in place: • People • Systems • Properties • Supply chain • New brand launch • Completed by March 2005

  8. Guests (millions) 6 17% CAGR 5 4 3 2 1 0 1999 2000 2001 2002 2003 Business Leisure a growth sector use of branded budget hotels

  9. 14% 12% 12% 10% 8% 6% 6% 4% 2% 0% Total accommodation Total hotels market an underdeveloped sectorbranded budget hotels as a percentage of total rooms available (UK) Source: Whitbread analysis of data from BHA/VisitBritain/University of Huddersfield

  10. premier travel innthe competitive edge • Strong product consistency • Nationwide coverage • World class reservation system • Transparent pricing • 100% Satisfaction Guarantee • Top quality pub restaurants

  11. David Richardson finance director, Whitbread PLC

  12. the pipeline Premier Lodgehigh quality assets Source: Vendor information

  13. Premier Lodgehigh quality assets • 48% of Premier Lodge rooms opened within last four years • 88% of lodges built or refurbished completely within last three years • 19 pub restaurants re-branded to Brewers Fayre by March 2005 Source: Vendor information

  14. the acquisitionassets Source: Vendor information * inc. long leases at peppercorn

  15. incremental capital employed

  16. incremental profit • Existing business • Underlying growth • Recent and new openings • Revenue enhancement • Cost synergies

  17. incremental profitexisting business Source: Vendor information

  18. incremental profitfrom recent and new openings * Based on 2003 profit contribution per room

  19. incremental profitrevenue enhancement • c.£8m additional PBIT through greater occupancy and sales synergies: • reservations • cross-sell • estate density • heightened consumer awareness Benefits accruing to both Premier Lodge and Travel Inn estates

  20. incremental profitcost synergies

  21. one-off costs

  22. a group perspective • Gearing (2003/4 pro forma) – 65%(38% pre-acquisition) • Interest cover (2003/4 pro forma) - 3.7 x(5.6 x pre-acquisition) • EPS enhancing in first full year (2005/6) • Return on investment to exceed 10% in second full year (2006/7)

  23. appendix

  24. key ratios

  25. key ratios Source: Whitbread PLC published accounts/vendor information

  26. premier travel innhotels and bedrooms * Spirit continues to operate an additional seven hotels (229 bedrooms) under a franchise agreement with Whitbread

  27. 30,000 25,000 20,000 15,000 10,000 5,000 0 1996/7 1997/8 1998/9 2000/1 2001/2 2002/3 2003/4 2004/5E 1999/00 Whitbread budget hotelsroom growth 1997-2005

  28. premier travel inn management biographies

  29. Career highlights • joined Travel Inn as managing director in 2003 • 2001-3: managing director, Costa Also • marketing & strategic planning director, Whitbread Restaurants • sales & marketing director, Whitbread Inns • managing director, Aramark Food Services Plc Age50 Mike Tye managing director, premier travel inn

  30. Career highlights • joined 2002 as finance director, Travel Inn Also • planning director, Pizza Hut • strategic finance project manager, Whitbread • PwC Management Consulting • several senior finance positions with Reckitt & Coleman Age37 Neil Cooper finance director, premier travel inn

  31. Career highlights • joined Travel Inn as sales and marketing director in April 2001 Also • joined Unilever in 1987 as a systems engineer before moving into marketing • gained widespread experience working across a number of food brands in different European markets • in August 98 promoted to marketing controller for margarine and spreads Age39 Gill Baker sales and marketing director, premier travel inn

  32. Career highlights • operations director - Managed Travel Inn • previously regional operations director for MTI’s North Also • strategic planning & business analysis manager (leisure division), The Rank Group • regional manager London & South, Odeon Cinemas Ltd • regional director, London & South, Odeon Cinemas Ltd Age33 Paul Flaum operations director, (managed) premier travel inn

  33. Career highlights • operations director for Travel Inn • 2 years operations director Brewers Fayre/Brewsters Also • 6 years with Hilton Hotels • 8 years with Forte Hotels • 13 years with Thistle Hotels – trainee to general manager • general manager White House Hotel, Herm, Channel Islands Age51 Darroch Crowford operations director, premier travel inn

  34. Career highlights • joined June 2003 as property director Also • head of acquisitions then head of development, Kingfisher • head of property, BAA • various senior positions in other leisure companies such as Rank/Luminar • developed property side of the BigW chain, Woolworths Age40 Deborah Parker property director, premier travel inn

  35. Career highlights • joined 2003 as HR Director – Travel Inn • HR director – Endeva Also • HR director Thorn Managed Services • head of HR – Thorn UK • compensation & benefits mgr, Thorn UK • Safeway Stores plc • Asda stores Age34 Tim Painter human resources director, premier travel inn

  36. Career highlights • joined in April 1998 as IT Director • previously business systems manager, finance services division, Whitbread Also • project accountant, services division, Whitbread • senior business consultant, Whitbread Age40 Susan Thomas systems director, premier travel inn

More Related