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 16 years.
Our strategy is underpinned by our Five-Year Plan that is set to drive us closer towards the achievement of each of the following ambitions:
- Extending our market-leading position in the UK
- Becoming No.1 in Germany
- Enabling long-term growth
Generating benefits for our teams, guests, communities and shareholders:
- Highly engaged teams
- Market-leading guest proposition
- Sustainable profitable growth
Generating benefits for our teams, guests, communities and shareholders:
- Highly engaged teams
- Market-leading guest proposition
- Sustainable profitable growth
Striking the appropriate balance through our strict capital discipline and framework, we are:
- Investing in long-term value
- Rewarding key stakeholders
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.
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. 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:
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.
EXTEND MARKET-LEADING POSITION
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 and become the number one hotel brand.
GROWTH
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
ATTRACTIVE LONG-TERM RETURNS
