Combined investment in excess of £80 million for two new hub by Premier Inn hotel sites in SW1
Whitbread has purchased the freeholds on two prime sites in Westminster, on Dacre Street and Tothill Street, for a combined investment in excess of £80 million, including the company’s single biggest asset purchase to date for its hotel development pipeline.
21 Tothill Street was acquired for circa £55 million (from WELPUT) and 15 Dacre Street for an undisclosed sum. Whitbread intends to redevelop both sites for its new hub by Premier Inn format which launched on St Martin’s Lane, Covent Garden in November 2014.
Whitbread purchased both office buildings unconditionally and in off-market deals – it will now be working up planning applications for change of use and full refurbishment of the buildings in line with the innovative hub by Premier Inn design format.
These two SW1 acquisitions bring the number of committed hub by Premier Inn sites to 13 – with 10 secured sites in London (of which St Martin’s Lane is currently the sole trading hotel) and 3 in Edinburgh.
Subject to planning consents for both properties, these new acquisitions will add a further circa 450 new bedrooms to the hub by Premier Inn development pipeline (Dacre Street circa 137 bedrooms and Tothill Street circa 316 bedrooms).
These latest acquisitions also bring the total hub by Premier Inn development pipeline to approximately 2,500 bedrooms, contributing to the overall Premier Inn target of 75,000 bedrooms by 2018.
Jo Moon, Director of Acquisitions for Whitbread Hotels and Restaurants, said:
“Doing both deals quickly and off-market shows how the strength of our balance sheet is helping us to secure top quality opportunities and we anticipate many more during 2015.”
The hub by Premier Inn format has been designed to offer guests a high specification and high design standard in outstanding city centre locations – all within a more compact room layout. The brand has been tested over more than three years of research and development and is designed to appeal to guests who put a premium on location, design and value. A typical hub by Premier Inn bedroom starts from 11.4 sq m compared to 21.3 sq m for a typical Premier Inn.
Derek Griffin, Head of Acquisitions (London), for Whitbread Hotels and Restaurants, said:
“We are making significant capital investment into our estate and our fast-growing, new hub by Premier Inn pipeline. These are outstanding city centre locations ideal for our hub by Premier Inn format and clearly demonstrate the scale of our ambition and our confidence to grow the brand in London.”
Whitbread has requirements for more hub by Premier Inn sites across London, Edinburgh, Core Cities, strong-performing provincial locations and established hotel micro-markets.
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Whitbread PLC is the owner of the UK’s favourite hotel chain, Premier Inn and the UK’s favourite coffee shop, Costa, as well as restaurant brands, Beefeater, Brewers Fayre, Table Table and Taybarns.
Whitbread PLC employs 45,000 people in over 2,000* outlets across the UK, with its well-loved brands making every day experiences special for over 24 million UK customers every month.
Whitbread has outlined growth milestones for 2016 and 2018. The 2018 milestones are to increase the number of Premier Inn UK rooms to around 75,000 and to achieve global system sales of around £2bn for Costa.
At Whitbread we are committed to being a force for good in the communities in which we operate. Our CR programme, 'Good Together' is focused on three pillars of Team & Communities, Customer Wellbeing and Energy & Environment.
In the year ended 27th February 2014, Whitbread PLC reported a 13.0% increase in Group Revenue to £2,294.3 million and Underlying Profit before tax of £411.8 million up 16.5%.
Whitbread PLC is listed on the London Stock Exchange and is a constituent of the FTSE 100. It is also a member of the FTSE4Good Index.
*excludes Costa Franchise stores and Costa Express