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Our business model and strategy

Our unique ownership business model provides us with a competitive advantage in a challenging market, and has enabled us to become the number one hotel operator in the UK, and 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.  

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

  • 97% direct booking

    Low-cost customer acquisition & retention

Our operating model drives competitive advantage

Premier Inn’s unique operating model 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. The key components of the model that drive our competitive advantage, combined with our strong brand and direct distribution, are:

Premier Inn Logo
  • Brand strength
  • Scale advantage
  • Direct digital distribution
  • Operational control
  • Property flexibility
  • Everyday efficiency

We have a proven strategy which is highly compelling

Whilst the impact of COVID-19 will be material on the hospitality sector, our strategic priorities are consistent with our proven plan to create sustainable shareholder value over the long-term. We expect to achieve long-term growth in earnings and dividends, combined with strong return on capital through disciplined execution in three key areas:

  1. GROW AND INNOVATE IN THE CORE UK MARKETS

    We will continue to grow and innovate Premier Inn, by leveraging the competitive advantages of the Whitbread operating model, including the strength and the Premier Inn brand and market-leading direct distribution and capitalising on enhanced structural opportunities.

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

    The German market has the same characteristics as 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 the 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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