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Whitbread launches 'hub by Premier Inn' city centre hotel concept Whitbread launches 'hub by Premier Inn' city centre hotel concept
(3 months later)
Whitbread has announced a new city centre hotel concept focused on cheaper, smaller rooms in the best locations.Whitbread has announced a new city centre hotel concept focused on cheaper, smaller rooms in the best locations.
The UK's largest hotel group will open its first "hub by Premier Inn" in St Martin's Lane in the West End of London in summer 2014.The UK's largest hotel group will open its first "hub by Premier Inn" in St Martin's Lane in the West End of London in summer 2014.
It has committed to four further locations in central London, which will be opened between early 2015 and early 2016 – Goodge Street, Great Tower Street, Spitalfields and King's Cross.It has committed to four further locations in central London, which will be opened between early 2015 and early 2016 – Goodge Street, Great Tower Street, Spitalfields and King's Cross.
The FTSE 100 company is also planning hub hotels for Edinburgh and other cities.The FTSE 100 company is also planning hub hotels for Edinburgh and other cities.
Whitbread said the hubs would be compact and contemporary with "excellent connectivity that will offer good value for money and appeal to customers who value price, location and design over space".Whitbread said the hubs would be compact and contemporary with "excellent connectivity that will offer good value for money and appeal to customers who value price, location and design over space".
Andy Harrison, the Whitbread chief executive, insisted there was enough room in the market for both its established budget Premier Inn brand and the new hubs.Andy Harrison, the Whitbread chief executive, insisted there was enough room in the market for both its established budget Premier Inn brand and the new hubs.
"We have 6% of the central London market at the moment so we think we've got a lot to go for," he added."We have 6% of the central London market at the moment so we think we've got a lot to go for," he added.
Hub rooms will be up to 30% cheaper than Premier Inn rates, with an average room rate in central London below £100 and starting prices and off-peak rates likely to be around £60.Hub rooms will be up to 30% cheaper than Premier Inn rates, with an average room rate in central London below £100 and starting prices and off-peak rates likely to be around £60.
The group is aiming to have around 40 "hub by Premier Inn" hotels opened or in the pipeline by 2018, with a total of 6,000 rooms.The group is aiming to have around 40 "hub by Premier Inn" hotels opened or in the pipeline by 2018, with a total of 6,000 rooms.
The hotels will have 25% lower build and operating costs compared with a central London Premier Inn, Whitbread said.The hotels will have 25% lower build and operating costs compared with a central London Premier Inn, Whitbread said.
Rooms will be 11.4 sq metres and feature a desk that folds into the bed, luggage storage beneath the bed, an en suite bathroom with power shower, free Wi-Fi and a 40-inch smart screen television.Rooms will be 11.4 sq metres and feature a desk that folds into the bed, luggage storage beneath the bed, an en suite bathroom with power shower, free Wi-Fi and a 40-inch smart screen television.
There will be a hub app allowing customers to book, check-in online and pre-select room, temperature and light settings, as well as television and radio channels.There will be a hub app allowing customers to book, check-in online and pre-select room, temperature and light settings, as well as television and radio channels.
"With substantial operating and commercial synergies from the Premier Inn network, we are confident that 'hub' will deliver good returns for our shareholders," Harrison said."With substantial operating and commercial synergies from the Premier Inn network, we are confident that 'hub' will deliver good returns for our shareholders," Harrison said.
Whitbread, which also owns Costa Coffee and Beefeater, has 650 Premier Inn hotels and more than 52,000 rooms across the UK and Ireland.Whitbread, which also owns Costa Coffee and Beefeater, has 650 Premier Inn hotels and more than 52,000 rooms across the UK and Ireland.
It said the new concept hotels would help it to achieve its target of 75,000 UK rooms by 2018.It said the new concept hotels would help it to achieve its target of 75,000 UK rooms by 2018.
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