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Whitbread property update and reception performance
- 1. This document has been marked as Non-Confidential Whitbread property update and reception
- 3. 39 UK hotels supported the 92 rooms offered to flood victims in Germany 622,000 meals donated (FY21/22) £20m target hit for GOSH in the UK €25k £500k pledged to DEC for Ukrainian Aid 15 2 years of on-going restrictions in Germany months of restricted trading in the UK, with 9 months of full trading new Covid-secure measures across restaurant & hotel ops c.240+ 30,000+ team members claimed under furlough & kurzabeit across an 18 month period 16 months 25,000+ new team members joined us in the UK & Germany of remote working in the UK & Germany 8 months of hybrid working Invested£33m in teammemberpay £1bn c£500m continued investment over last 2 years £80m cost efficiency (FY22 – FY25) raised for shareholders Restored dividend payments to shareholders £58m returntoprofitFY22 What we have been through £550m green bonds
- 4. c.2x Value for money Price Quality best value hotel chain for 11th year 840 open sites 82,383 rooms Market-leading distribution and operating model BrandIndex at 35.0 17% ahead of competition Highest level since pre-2017 c.24,000 Premier Inn team members YouGov ® Largest hotel brand the size of our nearest competitor 44 pipeline 7,216 rooms Growing and innovating in the UK
- 5. This document has been marked as Non-Confidential The plan for this evening performance update estate growth catch-ups
- 6. 6 6 6 TRADING LANDSCAPE | Simon Ewins – MD Premier Inn UK
- 7. [Scale provides customer choice]1 UK’s favourite hotel brand…by a clear margin Enhanced structural opportunities provide clear runway for growth Best-in-class operations – ownership model 82k 44k 18k 17k VALUE FOR MONEY SIMPLE CUSTOMER JOURNEY LEADING CUSTOMER PROPOSITION CHOICE Market leading direct distribution High quality budget offering with broad appeal UK’s largest hotel brand1 Winner of YouGov best value hotel chain for the 11th year running UK’s favourite hotel brand2 Average room rate pre-COVID £61.50 Investing in new formats Refurbishment spend ahead of pre-COVID levels High quality rooms Satisfaction 1st Impression 1st Value 1st Likelihood-to-recommend 1st Quality 2nd* Only 1% distribution through OTAs 7 Premier Inn’s customer proposition is market leading
- 8. £2,072m £589m £1,703m FY20 FY21 FY22 Total sales £280m £(1,007)m £58m FY20 FY21 FY22 Statutory profit before tax Commercial initiatives and the strong appeal of Premier Inn’s customer offering are driving recovery as Government restrictions have relaxed 8 Pre-COVID Restrictions throughout UK and Germany Restrictions eased in Q1 for UK, Germany restrictions throughout We have witnessed a strong recovery FY20 FY21 FY22 FY20 FY21 FY22
- 9. 61% 82% 83% 80% 69% 60% 77% 83% Sep 21 Oct 21 Nov 21 Dec 21 Jan 22 Feb 22 Q1 H1 FY22 9 Premier Inn UK : H1: Certain restrictions on hotel and restaurant visits Dec - Jan: Increased restrictions in parts of the UK due to Omicron variant Feb - Apr: Restrictions lifted FY20 (pre-COVID) Occupancy Accommodation sales recovered vs FY20 1: versus FY20 on a 52-week basis 1 67% 109% 110% 111% 108% 89% 113% 131% Premier Inn is trading very strongly in the UK Accommodation sales ahead of pre-COVID levels
- 10. 1: STR data, full inventory basis, M&E excludes Premier Inn – restated in line with STR M&E room stock reclassification 2: STR data, revenue share of total UK market 3: Versus FY20 on a 52-week basis 4: STR data, full inventory basis, 4 March 2022 to 14 April 2022, M&E excludes Premier Inn 10 Total sales outperformance vs. the M&E hotel market Premier Inn’s strong brand, scale and direct distribution helping maintain material outperformance of the M&E market… PI market share2 11.2% 9.5% 9.5% 9.2% 8.7% 10.6% PI outperformance1 vs M&E 12.5% 13.3% 17.1% 19.0% 20.3% 16.5% M&E vs rest of market outperformance 18.3% 23.3% 16.4% 12.0% 18.0% 20.7% …and the M&E market continue to materially outperform all other hotel sectors PI market share growth vs FY202 3.9pp 2.4pp 2.1pp 1.9pp 2.4pp 3.3pp 10.6% 19.4% 19.6% 2.7pp 9.6% 28.3% 12.3% 2.1pp 3 4 Premier Inn UK : continued market outperformance 27.2% 4 H1 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Q1 4
- 11. Mitigations and compelling growth opportunities drive margin recovery ✓ Long runway for growth in UK, adding 2-3k rooms in a normal year ✓ New hotels improved operating leverage ✓ Pricing power SECTOR HEADWINDS MITIGATED BY EFFICIENCIES AND GROWTH ✓ Longstanding efficiency programme ✓ Technology investment driving top line Efficiencies Growth Current operating environment CAPITALISE ON STRUCTURAL OPPORTUNITIES AND COMPETITIVE ADVANTAGE ✓ Advantaged commercial model ✓ Investment driving market share gains ✓ Price uplift from refurbs and Premier Plus ✓ Estate optimisation Initiatives ✓ Accelerated independent decline ✓ Reduction in new supply Competitive opportunities ✓ Increased domestic tourism ✓ Resilient tradespeople demand ✓ Importance of brand standards × Increased working from home Customer behaviour × Supply chain disruption ? Labour shortages × Inflationary pressures Our outlook : continued confidence in returning to pre-COVID profit
- 12. 57% 48% 24% 24% 13% 17% 6% 11% 2010 2019 2022 12 ACCELERATING DECLINE IN INDEPENDENT SUPPLY 1: Company data 2: Sample of >35% of independent room stock, excludes temporary closures Premier Inn Budget branded Other branded Independents Increase in rate of independent exits expected to continue over the next 18 – 24 months 678k rooms 1 • Clear evidence of distress in the independent sector • Sample of >35% of UK independent room stock indicates 3x acceleration in rate of decline (excl. temporary closures) in supply since the start of the COVID-19 pandemic • Expect accelerated independent supply contraction to continue into FY23 and beyond Actual 713k rooms Decline of 1.0pp per year over nine years 3x acceleration over the last two years Enhanced structural opportunities for growth in the UK
- 13. 13 13 13 ACQUISITIONS UPDATE | Derek Griffin – Head of Acquisitions
- 14. 14 Premier Inn & hub – expanding through the pandemic FY21/22 +3,780 new rooms * FY22/23 +1,500 - 2,000 new rooms * Prime city centre Connected urban Leisure & adventure New mkts FY23/24 +2,000 – 3,000 new rooms * HASTINGS * new rooms opened and targeted to open in the UK & Ireland
- 15. 15 International : Ireland ready for take-off A STRONG START IN AN EXCITING MARKET FOR PREMIER INN FY 2021/22 97rooms FY 2022/23 210rooms FY 2023/24 810rooms Total secured pipeline 1,016rooms Dublin & nationwide 4,000 room target Room openings in Ireland are included in UK & Ireland bedroom opening targets
- 16. Four case studies of how we are expanding our brands Oxford Westgate 90 rooms Freehold Self build Milton Keynes (Avebury Bvd) 180 rooms Leasehold Dominvs Group Forward funded by M&G Real Estate Keswick 71 rooms Leasehold Premcor Lake District National Park Dublin (Trinity College) 113 rooms Leasehold Red Rock Developments Forward funded by Aviva Investors
- 17. 17 Flexibility, expertise & financial strength underpins new site acquisitions - a few London examples... Farringdon 181 room hub Marylebone 294 bedroom hub Westferry 400 room Premier Inn Paddington Eastbourne Terrace 369 room Premier Inn, hub & Bar + Block
- 18. Although there will be challenges ahead, we are confident of our ability to deliver our long-term ambition As a business Vertically integrated business model Unique commercial and distribution model Committed to growing market leading brands Embedded sustainability programme Responsible decision making As a team Flexible development requirements Proven ability to deliver at scale Strong financial covenant Innovations in product and format Experienced and motivated team Data-led network planning Uniquely placed in the market Investing in modern technology platform
- 19. Acquisitions target locations cloud 19 Network plan review at an advanced stage
- 20. 20 20 20 Thank you | Enjoy the evening | Stay in touch