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Our business model and strategy

Our unique ownership business model provides us with a competitive advantage in our core market and has enabled us to become the number one hotel operator in the UK.  It has also helped us to expand our presence in Germany.

Our unique vertically integrated model sets us apart 

Our vertically integrated model, which combines the ownership of property, hotel operations, brand, and inventory distribution has enabled Premier Inn to grow at a significantly faster pace than competitors, deliver a consistently superior customer experience and generate a strong return on capital for shareholders over the last 15 years.  

Model 23 3
Hotel industry value chain

  • Property development
  • Property ownership
  • Brand
  • Hotel operation
  • Inventory distribution
Premier Inn’s unique, vertically integrated model

Delivering quality & value-for-money for customers whilst creating value for stakeholders

  • Control & fund development

    Optimal hotel location, design & layout

  • Balanced freehold/ leasehold

    Large network, long tenure, refurb control, estate mgt.

  • Our own brand

    Consistent customer offering

  • End-to-end operation

    Consistent execution of high standards at low cost

  • Less than 1% booked via online travel agents

    Low-cost customer acquisition & retention

Our operating model drives competitive advantage

Our model also provides a clear competitive advantage, enabling the delivery of a winning customer proposition that will have a strong appeal to customers in both the current and post pandemic environments.

Premier Inn Logo
  • Brand strength
    • UK’s strongest hotel brand
    • Market leading customer metrics
    • First choice for more travellers
  • Scale advantage
    • Largest UK network
    • Economies of scale
    • Superior network access
  • Direct digital distribution
    • Market leading direct digital distribution model
    • Low-cost customer acquisition & retention
  • Operational control
    • All hotels operated by us
    • High quality experience
    • Consistent execution, no brand fees
    • Dynamic proprietary pricing model
    • Tailored F&B offering
  • Property flexibility
    • Low-cost access to capital
    • Access to preferred sites at local level
    • Lower rent costs
  • Everyday efficiency
    • Efficient operating structures
    • Standardised model & rooms
    • Ongoing opportunity to drive efficiency further

We have a proven strategy which is highly compelling

Our strong balance sheet and vertically integrated business model differentiate us from many other hotel groups.  However, in conjunction with the careful execution of our business strategy, they have combined to deliver strong growth both in the UK and now Germany, whilst also providing a consistent and superior customer experience. The result has been an impressive track record of high return on capital for our shareholders and additional benefits for our other key stakeholders.

Our strategy comprises three key pillars:

  1. GROW AND INNOVATE IN THE CORE UK MARKETS

    We will continue to grow and improve Premier Inn, by leveraging the competitive advantages of the Whitbread operating model, including the strength and the Premier Inn brand, our market-leading direct distribution and capitalising on enhanced structural opportunities caused by a material reduction in UK supply.

    Market share gains
  2. FOCUS ON OUR STRENGTHS TO GROW IN GERMANY

    The German hotel market is similar to that in the UK, making it a highly attractive market for Premier Inn’s international expansion. In a market with high levels of fragmentation and no market-leading budget hotel brand, Premier Inn has a great opportunity to replicate the success of the UK model here.

    GROWTH
  3. ENHANCING THE CAPABILITY TO SUPPORT LONG TERM GROWTH

    Property backing and a successful efficiency programme help provide financial flexibility and the ability to invest in growth when others will be constrained

    PROFIT RECOVERY AT ATTRACTIVE ROCE
read more about our investment case in the Investor section

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