Whitbread/ Morgan Stanley round table

1. Whitbread/Morgan Stanley round table 14th July 2005

2. Mike Tyemanaging director, Premier Travel Inn

3. Today’s presentation • Premier Travel Inn: a Whitbread perspective • The UK budget hotel sector • Operating performance • Strategic objectives • Q&A

4. Premier Travel Inn: a Whitbread perspective Source: ‘Continuing’ Whitbread, H2 2004/5 (excludes Marriott, Maredo and Britvic)

5. UK budget hotel sector 19% CAGR 11% CAGR Source: Deloitte/BDRC/Whitbread research

6. Premier Travel Inn: Operating performance = Source: Whitbread published data

7. Premier Travel Inn: Operating performance Source: Whitbread published data

8. Premier Travel Inn: Operating performance • Strong product consistency • Well-invested estate • Transparent pricing • 100% satisfaction guarantee • Quality pub restaurants • Nationwide coverage • Density of estate • Key locations • Systems • World-class reservation system (BART) • Business account card

9. Strategic objectives: Grow estate and market share • Grow the Premier Travel Inn estate • 35,000 bedrooms by 2008 • 1,500 – 2,000 new bedrooms per annum: • Roadside with Whitbread pub restaurant (new and existing) • City centre with integral F&B • Extensions to existing units • Management contract/franchise NB: Budget hotels accounts for 13% of total branded hotel rooms in UK (16% in France, 23% in USA) • Grow market share • ‘Steal’ from 3-Star, B&B and other budget hotels • Create new ‘occasions to stay’

10. Strategic objectives: Establish the Premier Travel Inn brand • Differentiation through unique guest proposition High quality room + Outstanding Guest Service + Everyday Low Pricing = Xtra Ordinary Value for Money Reassured by 100% Satisfaction Guarantee • Marketing campaign to drive brand awareness • TV, internet, Press • Scale and consistency results in high demand • Brand standards harmonised and improved • System maximises consumer satisfaction/demand • Cross-sell between sites

11. Strategic objectives: Premier Lodge yield uplift • Revenue improvements • Pricing harmonisation • Discounting & commission eradicated • Occupancy gap narrowed • Control costs • Acquisition case cost savings being achieved • Head offices and CRS systems merged • Best of both brands initiative

12. Strategic objectives: Drive brand-wide operational excellence • Increase higher margin booking channels • Internet • Voice recognition technology • Maintain and improve employee motivation and retention • Cost reduction and performance benefits • Continuous improvement in revenue management • Length of stay/shoulder nights/F&B penetration • Reduction in room costs • Build/maintenance • Utilities • Productivity

13. Appendix- Key personnel- Standard information- Glossary of terms

14. Career highlights • joined PTI as FD in 2005 having re-joined Whitbread as FD, Brewers Fayre in 2004 Also • finance director, Little Chef • corporate finance director, Laurel Pub Company • several senior finance positions in Whitbread Inns and Pizza Hut Andy Pellington finance director Gill Baker sales & marketing director 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

15. Career highlights • operations director - Travel Inn from 2003 • 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 Paul Flaum Operations director, (solus & co-located sites) Darroch Crawford Operations director, (Whitbread pub restaurant sites) Career highlights • operations director - Travel Inn from 2003 • 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

16. Career highlights • joined June 2003 as Travel Inn 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 Big W chain, Woolworths Deborah Parker Property director Tim Painter Human resources director 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

17. 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 Susan Thomas systems director Mike Tye managing director Career highlights • joined Travel Inn as managing director in July 2003 • 2001-3: managing director, Costa Coffee Limited Also • marketing & strategic planning director, Whitbread Restaurants • sales & marketing director, Whitbread Inns • managing director, Aramark Food Services Plc

18. Standard Information

19. Glossary of terms General Like-for-like sales Period over period change in total sales, less sales generated by businesses acquired or disposed of and retail outlets opened or closed during the prior year and the current year Return on Capital Operating profit divided by period end net assets. (Where average ROCE is quoted it is based on the average of opening and Employed (ROCE) closing net assets) Operating margin Operating profit expressed as a percentage of sales Hotels Achieved Room Rate (ARR) Hotel accommodation income divided by the number of rooms occupied by guests Occupancy Number of hotel bedrooms occupied by guests expressed as a percentage of the number of bedrooms available in the period Yield (RevPar) Also known as "revenue per available room" this hotel measure is achieved by multiplying the ARR by the occupancy rate Income before fixed costs Hotel operating profit before directly attributable fixed costs (such as rent , rates, margin (IBFC) insurance, etc ) and central costs divided by hotel sales Profit per room Hotel operating profit ( after allocating central costs) divided by the number of rooms available