Aug 26, 2022
Whitbread: Premier Inn buys Stranded asset in move upmarket
In future, the aspirational may boast of staying on The Strand, the London thoroughfare adorned by the swish Savoy Hotel, then check into a Premier Inn instead. Travellers who remember staying at Premier Inns when it cost £40 a night may grumble that prices will be equally prohibitive. Which expects to spend more than £200m on its new location, is keen for the Premier Inn brand to transcend its budget image. There are now 840 Premier Inns across the country catering to leisure as well as business travellers. Its trailing ebitda margin is 14 per cent, compared with 27 per cent for Holiday Inn owner IHG, according to S&P CIQ. Profits before tax of £58.2m in the year to March followed a loss of £1bn a year before. A Premier Inn hotel on the Strand looks very like a post-pandemic statement of intent from Whitbread. Meanwhile, if socially-aspiring guests are worried they are slumming it, they can always stroll down the road for a gin and tonic in the The Savoy bar.
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