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PREMIER Inn owner Whitbread is poised to ramp up its advertising aggressively to take on hotel chains of supposedly higher quality.
Chief executive Alan Parker believes there will be a “flight to value” this year as companies and individuals look to cut costs.
“It is a harsh economic climate but we have a cunning plan. I expect to outperform the competition,” he said.
Whitbread will also continue expanding its seemingly ubiquitous Costa Coffee chain.
It opened 300 new stores last year and reckons on adding another 200 this year.
Whitbread saw profit for the year to February up 9% to £230 million, allowing it to maintain the dividend at 26.9p.
Premier Inn has already won plaudits for offering travellers a reliable and cheap night's sleep. Parker reckons companies can halve their travel budgets for staff if they switch.
Parker, 62, says he has no intention of stepping down any time soon. “This is a time to have an experienced hand at the helm,” he said, echoing Gordon Brown.
Total revenue was up 10% to £1.34 billion. Whitbread has debts of £623 million.
