Investing expanding innovating

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1 Investing expanding innovating

2 01 PREMIER INN 2015 : Investing, expanding, innovating 59,000+ bedrooms bedrooms today today 700+ hotels Premier Inn AT A GLANCE Sub 4.5% sub 4.5% yields target target locations locations 50 FTSE 50 business business years trading experience trading experience

3 PREMIER INN 2015 : Investing, expanding, innovating OUR HISTORY 1742 Founded when Samuel Whitbread begins brewing beer 1868 Bottling is introduced and Whitbread becomes a national brand Welcome to Premier Inn and our parent company Whitbread PLC Premier Inn is the UK s favourite hotel chain and, today, we have more than 59,000 bedrooms across 700+ hotels. Our success is based on providing our customers with exceptional value, consistent quality and great locations so property is at the heart of everything we do. We are committed to expanding and constantly improving our estate and we would like to work with you where there are suitable and mutually-rewarding opportunities. Last year we opened a new hotel every ten days we expect to do similar this year. There are over 13,500 bedrooms in our committed development pipeline, with more exciting sites on the horizon, and we are moving ever closer to our target of 75,000 bedrooms by But we need to keep re-stacking the pipeline, and that s where you can help. Last year was especially significant as we opened the first of our innovative new hub by Premier Inn hotels on St Martin s Lane in central London. We see great potential for the hub by Premier Inn format and, crucially, it now gives us two different and complementary property propositions, bringing more sites into play and guaranteeing our competitiveness on the very best locations. Expansion is only possible with the help of the right partners. With your support, we can maintain momentum and sustain our successful growth. We have significant capital to invest and look forward to doing more great deals in Our financials Our flexibility and the security of Whitbread s balance sheet are key components for how we work and what we can offer. Whitbread s consistent performance and double-digit growth underpins our expansion strategy, giving us the firepower to transact and invest and our partners the assurance of doing business with a leading and well-resourced FTSE 50 company First Beefeater opens 1987 First Travel Inn opens 1995 Whitbread acquires Costa Coffee 2001 Sale of Pub and Bars for 1.63bn 2004 to 2007 A new strategy to focus on value for money wholly-owned Whitbread brands. Sale of franchised and non-core brands such as Marriott Hotels, Pizza Hut, T.G.I. Friday s and David Lloyd Leisure 2004 Whitbread becomes the UK s largest hotel chain with the acquisition of Premier Lodge 2007 Whitbread announces hotels to be rebranded as Premier Inn 2007 Premier Inn opens 500th hotel in Bournemouth Our deals are supported by our Whitbreadbacked covenant and we consistently achieve great yields First international Premier Inn opens in Dubai In step with our overall expansion, we are constantly re-investing and improving our estate staying ahead of the competition and maintaining our hotels in tip-top condition New Chief Executive, Andy Harrison, joins Whitbread Whether freehold or leasehold, self-build opportunities or developer-led schemes, conversions or new-builds whatever the opportunity, if the site is right, we would love to hear from you. Jo Moon, Director of Acquisitions, Whitbread Hotels and Restaurants 2011 Premier Inn opens 600th hotel in Stratford-Upon-Avon 2012 Premier Inn opens largest hotel at London Gatwick Airport 2012 Premier Inn reaches 50,000 bedrooms in the UK and Ireland 2013 Premier Inn reaches 54,000 bedrooms in UK and Ireland 2014 hub by Premier Inn launched 02

4 03 PREMIER INN 2015 : Investing, expanding, innovating Our Premier Inn offer Premier Inn delivers strong total occupancy and is growing room numbers. We offer our customers greater choice compared to our competitors. Key to this success is the strength of our hotel network, the power of the Premier Inn brand, our dynamic pricing system, and the quality and consistency of the Premier Inn guest experience, backed up by our Good Night Guarantee. To reinforce this success we are continually investing in our product and refurbishing and maintaining the Premier Inn estate. Our product Average net room area: 18 to 24m 2 Average gross room area: 30 to 45m 2 Up to 700 rooms per hotel Hotels with strong design and architectural credentials Our requirements 60 bedrooms 25,000ft 2 / 2,322m 2 80 bedrooms 35,550ft 2 / 3,292m bedrooms 41,000ft 2 / 3,818m bedrooms 46,000ft 2 / 4,222m 2 With a joint site restaurant circa 6,000ft 2 / 557m 2 extra

5 PREMIER INN 2015 : Investing, expanding, innovating 04 Small format Telford Smaller format for 50+ bedrooms Adjusted f&b offer Suits above retail, high street and tight mixed-use schemes Makes smaller sites viable Standalone Premier Inn Worcester City Centre New build freehold or leasehold Standalone or part of mixed-use schemes Conversions eg office to hotel Typically large town or city centre locations Joint Site Premier Inn Redditch Premier Inn with adjoining branded restaurant Larger footprint sites Suits smaller towns and edge of town Typically acre sites

6 05 PREMIER INN 2015 : Investing, expanding, innovating Haymarket, Edinburgh Strength in our numbers Last year Whitbread achieved in excess of 2bn turnover. Our consistently strong financials mean our partners can rest assured in the quality of our offer. Through our established reputation and strong covenant we provide attractive deals to property developers and investors. London Aldgate London Archway One example of a successful developer partnership is Interserve. We have worked closely with Interserve for the past two years, bringing forward three excellent sites and 524 bedrooms, with two Premier Inn hotels in one of our key target locations: Edinburgh. Through our partnership we have been able to access prime opportunities and have cultivated a strong and mutually profitable relationship. In Edinburgh, we have secured part of the Haymarket development for a 190 bedroom Premier Inn and on Torphichen Street we have acquired a 150 bedroom hub by Premier Inn. Our third site with Interserve is in Newcastle, where we have secured 184 bedrooms on a prime site on Newgate Street. Investment across our three sites totals a significant 39 million. We are partnering with Whitbread on projects in Edinburgh and Newcastle and find their attitude refreshing. They are very clear about what they want, have a drilled down approach to getting things done and bring all of the benefits of partnering with a big company without any of the traditional baggage. They are doing great work nationwide and we are pleased to be part of their compelling growth story. Rob Skelston, Head of Property Development, Interserve Developments

7 PREMIER INN 2015 : Investing, expanding, innovating 06 London St Pancras Whitbread Whitbread Group PLC is a well-regarded FTSE 50 company with a strong balance sheet and sound financials We consistently achieve solid like for like sales and profit growth, and double digit revenue growth Whitbread Group has a BBB investment grade rating We continually measure our improvement for investors by the following methods: Brand expansion: this tracks the rate at which we are expanding our strategic business units ROCE growth: this measures the effectiveness of our capital expenditure decisions to ensure we continue to spend our investors money wisely Profit growth: ensuring continuous growth in profits Equally, our strong financials and Whitbread-backed covenant have attracted investors on prime sites. Just one example is AXA. AXA originally bought our 130 bedroom Stratford Waterways Premier Inn in 2011 from ABD Developments for a 6% yield. This year, with the assurance of our covenant, AXA completed its second Premier Inn investment with us on the leasehold of our new 168 bedroom Finzel Reach Premier Inn, in Bristol a mixeduse scheme, led by Cubex including office and residential for a sub-5% yield. We are bringing forward a 168 bedroom Premier Inn as part of our landmark mixed-use Finzels Reach development in Bristol city centre. Whitbread's strong covenant and competitive yields, supported by the consistent professionalism of its property team, have cemented a healthy and productive partnership. Working with Whitbread has reinforced our confidence in its proposition and paved the way to a long and successful relationship on this and future projects. Josh Roberts, Director of Cubex, the Bristol-based developer backed by Palmer Capital We operate freehold or leasehold hotels Our prime financial covenant yields sub 4.5% We offer investment grade leases of 25+ years We offer quick and firm decisions Here are just some of the companies we are pleased to call our property partners:

8 Our team Our Acquisition Managers are always hunting for new sites and opportunities. With 75,000 bedrooms to deliver by 2018 and a pipeline to re-stack, we re scanning the length and breadth of the UK & Ireland for the next deal. If you ve got a site, development or proposition that you think we could help you with, please don t hesitate to get in touch. Jo Moon Director of Acquisitions: joanne.moon@whitbread.com Guy Kemsley South East and East: guy.kemsley@whitbread.com John Bates Head of Acquisitions (Provinces): john.bates@whitbread.com Nick Johnston North West and North Wales: nicholas.johnston@whitbread.com Derek Griffin Head of Acquisitions (London): derek.griffin@whitbread.com Jonathan Langdon North West London: jonathan.langdon@whitbread.com Kevin Murray Senior North: kevin.murray@whitbread.com Owen Ellender North East London: owen.ellender@whitbread.com Richard Pearson Wales, South West and East Midlands: richard.pearson@whitbread.com John Rumsey South London: john.rumsey@whitbread.com