Title: 14th July 2005
1Whitbread/Morgan Stanley round table
2Mike Tyemanaging director, Premier Travel Inn
3Todays presentation
- Premier Travel Inn a Whitbread perspective
- The UK budget hotel sector
- Operating performance
- Strategic objectives
- QA
4Premier Travel Inn a Whitbread perspective
Source Continuing Whitbread, H2 2004/5
(excludes Marriott, Maredo and Britvic)
5UK budget hotel sector
19 CAGR
11 CAGR
Source Deloitte/BDRC/Whitbread research
6Premier Travel Inn Operating performance
Source Whitbread published data
7Premier Travel Inn Operating performance
Source Whitbread published data
8Premier Travel Inn Operating performance
- Strong product consistency
- Well-invested estate
- Transparent pricing
- 100 satisfaction guarantee
- Quality pub restaurants
- Nationwide coverage
- Density of estate
- Key locations
- Systems
- World-class reservation system (BART)
- Business account card
9Strategic objectives Grow estate and market share
- Grow the Premier Travel Inn estate
- 35,000 bedrooms by 2008
- 1,500 2,000 new bedrooms per annum
- Roadside with Whitbread pub restaurant (new and
existing) - City centre with integral FB
- Extensions to existing units
- Management contract/franchise
- NB Budget hotels accounts for 13 of total
branded hotel rooms in UK (16 in France,
23 in USA) - Grow market share
- Steal from 3-Star, BB and other budget hotels
- Create new occasions to stay
10Strategic objectives Establish the Premier
Travel Inn brand
- Differentiation through unique guest proposition
- High quality room
- Outstanding Guest Service
- Everyday Low Pricing
- Xtra Ordinary Value for Money
- Reassured by 100 Satisfaction Guarantee
- Marketing campaign to drive brand awareness
- TV, internet, Press
- Scale and consistency results in high demand
- Brand standards harmonised and improved
- System maximises consumer satisfaction/demand
- Cross-sell between sites
11Strategic objectives Premier Lodge yield uplift
- Revenue improvements
- Pricing harmonisation
- Discounting commission eradicated
- Occupancy gap narrowed
- Control costs
- Acquisition case cost savings being achieved
- Head offices and CRS systems merged
- Best of both brands initiative
12Strategic objectives Drive brand-wide
operational excellence
- Increase higher margin booking channels
- Internet
- Voice recognition technology
- Maintain and improve employee motivation and
retention - Cost reduction and performance benefits
- Continuous improvement in revenue management
- Length of stay/shoulder nights/FB penetration
- Reduction in room costs
- Build/maintenance
- Utilities
- Productivity
13Appendix- Key personnel- Standard information-
Glossary of terms
14- Career highlights
- joined PTI as FD in 2005 having re-joined
Whitbread as FD, Brewers Fayre in 2004 - Also
- finance director, Little Chef
- corporate finance director, Laurel Pub Company
- several senior finance positions in Whitbread
Inns and Pizza Hut
Andy Pellington finance director
Gill Baker sales marketing director
- Career highlights
- joined Travel Inn as sales and marketing director
in April 2001 - Also
- joined Unilever in 1987 as a systems engineer
before moving into marketing - gained widespread experience working across a
number of food brands in different European
markets - in August 98 promoted to marketing controller for
margarine and spreads
15- Career highlights
- operations director - Travel Inn from 2003
- previously regional operations director for MTIs
North - Also
- strategic planning business analysis manager
(leisure division), The Rank Group - regional manager London South, Odeon Cinemas
Ltd - regional director, London South, Odeon Cinemas
Ltd
Paul Flaum Operations director, (solus
co-located sites)
Darroch Crawford Operations director, (Whitbread
pub restaurant sites)
- Career highlights
- operations director - Travel Inn from 2003
- 2 years operations director Brewers
Fayre/Brewsters - Also
- 6 years with Hilton Hotels
- 8 years with Forte Hotels
- 13 years with Thistle Hotels trainee to general
manager - general manager White House Hotel, Herm, Channel
Islands
16- Career highlights
- joined June 2003 as Travel Inn property director
- Also
- head of acquisitions then head of development,
Kingfisher - head of property, BAA
- various senior positions in other leisure
companies such as Rank/Luminar - developed property side of the Big W chain,
Woolworths
Deborah Parker Property director
Tim Painter Human resources director
- Career highlights
- joined 2003 as HR Director Travel Inn
- HR director Endeva
- Also
- HR director Thorn Managed Services
- head of HR Thorn UK
- compensation benefits mgr, Thorn UK
- Safeway Stores plc
- Asda stores
17- Career highlights
- joined in April 1998 as IT Director
- previously business systems manager, finance
services division, Whitbread - Also
- project accountant, services division, Whitbread
- senior business consultant, Whitbread
Susan Thomas systems director
Mike Tye managing director
- Career highlights
- joined Travel Inn as managing director in July
2003 - 2001-3 managing director, Costa Coffee Limited
- Also
- marketing strategic planning director,
Whitbread Restaurants - sales marketing director, Whitbread Inns
- managing director, Aramark Food Services Plc
18Standard Information
19Glossary of terms
General Like-for-like sales Period over period
change in total sales, less sales generated by
businesses acquired or disposed of and retail
outlets opened or closed during the prior year
and the current year Return on Capital Operating
profit divided by period end net assets. (Where
average ROCE is quoted it is based on the average
of opening and Employed (ROCE) closing net
assets) Operating margin Operating profit
expressed as a percentage of sales Hotels Achiev
ed Room Rate (ARR) Hotel accommodation income
divided by the number of rooms occupied by
guests Occupancy Number of hotel bedrooms
occupied by guests expressed as a percentage of
the number of bedrooms available in the
period Yield (RevPar) Also known as "revenue per
available room" this hotel measure is achieved by
multiplying the ARR by the occupancy rate Income
before fixed costs Hotel operating profit before
directly attributable fixed costs (such as rent ,
rates, margin (IBFC) insurance, etc ) and
central costs divided by hotel sales Profit per
room Hotel operating profit ( after allocating
central costs) divided by the number of rooms
available