26th Sep 2007 11:16
Whitbread PLC26 September 2007 WHITBREAD ACQUIRES 2000 ROOMS FOR PREMIER INN Whitbread PLC has today announced the purchase of six hotels (770 rooms)currently trading in the UK under the Tulip Inn and Golden Tulip brands and asecured pipeline of nine further sites (1300 rooms) for £44m. The pipelinehotels are planned to open in the next two years. The six hotels currently trading had an EBITDA of £2.3m in the last financialyear and average occupancy of 70%. The 15 leasehold hotels will be converted to the Premier Inn brand at a cost of£9m. The current franchise arrangements with Golden Tulip Worldwide have beenterminated and the six open hotels will be rebranded by the year end. Takingaccount of the costs of integration it is anticipated that the transaction willbe marginally dilutive in the current financial year. The hotels have been purchased through the acquisition of Golden Tulip (UK)Limited and Pilot Hotels Limited from funds managed by Graphite Capital andmanagement shareholders. The consideration, which included the discharge ofexisting debt, was paid in cash on completion. Alan Parker CEO of Whitbread said: "I am pleased that we are able to buy thesemodern and well-located hotels for Premier Inn, the UK's largest and fastestgrowing hotel business. Once rebranded and integrated into our Premier Innportfolio, our focus will be on occupancy and securing further sites in thepipeline over and above these 15 hotels. We will now have our first Premier Innin the Republic of Ireland and will be looking for other opportunities in thatcountry. There is clearly significant growth potential through conversions suchas this and, coupled with our aggressive organic pipeline, we are well on trackto reach our target of 45,000 rooms in the UK by 2010." Media Contacts: Wendy Watherston,Tulchan Communications: 020 7353 4200 Dionne Parker,Interim Communications Director, Whitbread PLC: 07748 321557 Analysts: Christopher Rogers,Group Finance Director, Whitbread PLC: 01582 889418 Editor's note The six hotels are located at: GlasgowNewcastle GatesheadPortsmouthLeeds CastlefordDublin AirportManchester (Golden Tulip) Secured pipeline: BournemouthManchester AirportStoke/TrenthamBelfastSheffieldDoncasterGatwickYorkHull About Whitbread Plc ... Whitbread PLC is the UK's leading hospitality company,managing market leading businesses in the budget hotels, restaurant and coffeeshop sectors, including Premier Inn, Beefeater, Brewers Fayre and Costa.Whitbread's strategy is to create value for our shareholders by focusinginvestment and growing in expanding sectors of the hospitality industry,primarily in the UK but also in selected overseas markets. In the financialyear to March 1, 2007, Whitbread generated pre-tax, pre-exceptional profit of£213.0m. Founded in 1742, the company is listed on the London Stock Exchange(as WTB.L) and is a member of the FTSE100 FTSE4Good indices. http://www.whitbread.co.uk/. About Premier Inn ... Premier Inn is the UK's biggest hotel brand with over 480hotels and more than 32,600 rooms. UK Premier Inn bedrooms are 22m(2) andfeature a king size bed with quality duvet and pillow options; en-suite bathroomwith shower and bath; remote control TV/radio alarm; tea/coffee makingfacilities; and a spacious desk area with internet access. Premier Inn offerscustomers a 'Good Night Guarantee' of a good quality room, comfortablesurroundings and friendly service, which is unique amongst Britain's leadinghotel chains. Premier Travel Inn was the first Britain-wide hotel group to sign up withnational tourist boards, VisitBritain, VisitScotland and VisitWales: this meansPremier Inn is now part of a new quality assessment scheme, specially createdfor budget accommodation. A joint venture with Emirates was announced last year to develop the Premier Innbrand in the Gulf region, with its first site in Dubai due to open in Spring2008. Premier Inn also has a joint venture with Emaar-MGF to roll out 80 hotelsin India by 2017. www.premierinn.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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