Whitbread PLC Acquisition in Germany (3160N)
23 September 2019 - 9:50PM
UK Regulatory
TIDMWTB
RNS Number : 3160N
Whitbread PLC
23 September 2019
Acquisition in Germany
23 September 2019
Whitbread announces its second hotel portfolio acquisition in
Germany
Whitbread PLC today announces the acquisition of a portfolio of
three independent hotels in Germany, from a private individual
operating under the brand "Acomhotel". This is Whitbread's second
acquisition in Germany as part of a long-term investment plan in a
highly attractive market. The acquisition consideration will not be
disclosed and Whitbread's return on capital from the acquisition is
expected to be above its weighted-average cost of capital.
The portfolio consists of two leasehold hotels that are open and
trading, in Nuremburg and Munich, with the right to purchase the
freehold in seven and 13 years respectively. A further leasehold
hotel is under construction, in Stuttgart. The three locations
together comprise 482 rooms.
All three hotels are in strong locations in German tier one
cities, which match Whitbread's network planning targets. They are
readily convertible to the Premier Inn format with similar room
sizes and comparable ground floor space. Whitbread believes that
the conversion to Premier Inn will significantly enhance the
existing guest experience.
The hotels will continue to trade under the current "Acomhotel"
brand until refurbishment work is completed. Once converted, the
hotels will be relaunched as Premier Inn hotels, which is expected
to be in early 2020.
Mark Anderson, Whitbread PLC Managing Director Property &
International, commented:
"Today's announcement marks another important step in our
ambitious growth plan for Germany, as part of our strategic
priority to focus on our strengths to grow internationally. We have
accelerated our investment in Germany through a mix of organic
expansion, supported by focused and ongoing M&A activity. We
are building a strong counterparty reputation in Germany in
freehold and leasehold property transactions, as well as
facilitating exit for independent operators. We look forward to
welcoming the Acomhotel team and providing even more attractive
Premier Inn hotels for domestic German travellers."
Germany market structure
The German hotel market is around 30% larger than the UK and is
highly fragmented with 74% of market share held by smaller
independents. The high degree of domestic business travel also
makes the German market extremely attractive for the Premier Inn
short-stay, domestic traveller focused proposition. Through
addition of new high-quality capacity offered to customers at
attractive prices, Premier Inn is expected to win market share from
independent competitors and develop a successful business of scale
of the medium to long-term.
German portfolio overview
Premier Inn currently has three hotels open in Germany, all of
which are performing in line with our expectations; one in
Frankfurt, one in Hamburg and one Munich. A further 40 hotels are
now in the committed pipeline across 16 key cities in Germany:
Organic To be acquired Total
=================== ===================== ===================== =================
Open and trading 3 hotels (590 rooms) 17 hotels (2,770 20 hotels (3,360
rooms) rooms)
Committed pipeline 18 hotels (3,690 5 hotels (820 rooms) 23 hotels (4,510
rooms) rooms)
=================== ===================== ===================== =================
Total 21 hotels (4,280 22 hotels (3,590 43 hotels (7,870
rooms) rooms) rooms)
=================== ===================== ===================== =================
For more information please contact:
Investor queries
Matt Johnson, Whitbread PLC | matt.johnson@whitbread.com | +44
(0) 7848 146 761
Ann Hyams, Whitbread PLC | ann.hyams@whitbread.com | +44 (0)
7796 709 087
Anastasia Pittas, Whitbread PLC | anastasia.pittas@whitbread.com
| +44 (0) 7704 537 499
Media queries
Matt Johnson, Whitbread PLC | matt.johnson@whitbread.com | +44
(0) 7848 146 761
David Allchurch / Jessica Reid, Tulchan Communications | +44 (0)
20 7353 4200
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACQFXLFLKKFZBBD
(END) Dow Jones Newswires
September 23, 2019 07:50 ET (11:50 GMT)
Whitbread (LSE:WTB)
Historical Stock Chart
From Apr 2024 to May 2024
Whitbread (LSE:WTB)
Historical Stock Chart
From May 2023 to May 2024