In line with the Group strategy set out in April, Whitbread has announced plans to focus on its strengths, concentrating the Premier Inn international growth strategy on a smaller number of specific markets where it can generate good long term sustainable returns and where there is the greatest long term opportunity to build scale.
Therefore Premier Inn will focus its international strategy on continuing to grow its businesses in Germany, a structurally attractive hotel market and in the Middle East where we operate a profitable and growing joint venture and will commence a phased withdrawal from its operations in India and South East Asia.
Expansion plans for Premier Inn in the UK remain unaltered, and Costa’s UK and International growth plans are not affected by last week’s announcement. The impact of the cost associated with the withdrawal from South East Asia is not considered material.
