enjoy! Whitbread Mike Tye, managing director, Travel Inn CSFB Leisure Conference 2004
Transcript
Slide 1
enjoy!Whitbread Mike Tye, managing director, Travel Inn CSFB
Leisure Conference 2004
Slide 2
enjoy!Whitbread What is Travel Inn? UKs most widely distributed
hotel brand 18,200 bedrooms across 304+ Travel Inns Highest
occupancy of any major UK hotel brand Consistently ahead of 80% 80%
Travel Inns co-located and co-managed with Whitbread pub restaurant
brands C. 240 units alongside Beefeater, Brewers Fayre, Brewsters
Created by Whitbread in 1987
Slide 3
enjoy!Whitbread Why is Travel Inn so popular? Location over 300
prime sites around the UK Capital, Metro and roadside Value prices
from 45.95 to 82.95 Prices charged per room NOT per person
Slide 4
enjoy!Whitbread Why is Travel Inn so popular? Peace of mind
Focus on breadth of customer journey Consistently high product
quality consistent pricing policy 100% Satisfaction Guarantee
Slide 5
enjoy!Whitbread a Whitbread perspective Travel Inns share of
group operating profit* *2003/4 PBITA, excluding associates
Slide 6
enjoy!Whitbread a Whitbread perspective Travel Inns share of
group net assets* *2003/4 net assets
Slide 7
enjoy!Whitbread Travel Inn brand strategy Outstanding
operational consistency. World-class systems Top ten employer
.drives outstanding performance Return on capital employed
Occupancy Operating margin
Slide 8
enjoy!Whitbread Travel Inn brand strategy Increase distribution
Organic growth Strategic M&A
Slide 9
enjoy!Whitbread Operational consistency
Slide 10
enjoy!Whitbread Maintaining operational consistency World-class
systems No third-party commissions - guests can ONLY book through
Travel Inn One-tier reservation system recycles 1m of business per
month between Travel Inns Travel Inn Business Account centralises
corporate invoicing and generates sales of 1m per month On-line
reservations at 27% and growing Introduction of new voice
recognition technology for telephone bookings
Slide 11
enjoy!Whitbread Top 10 employer Brand values Resonant and
clearly communicated Only hotel company in Sunday Times 100 Best
Companies to Work For (72nd in 2004) 86% satisfaction rating from
employees Brand audit to drive standards Impact Improved employee
retention Strong employee satisfaction = strong customer
satisfaction
Slide 12
enjoy!Whitbread Return on capital employed 2001-2004
Slide 13
enjoy!Whitbread Return on capital employed Impact of work in
progress year-over-year Increase in proportion of leasehold sites
Overhead efficiencies Pricing impact
Slide 14
enjoy!Whitbread Bedroom occupancy 2001-2004
Slide 15
enjoy!Whitbread Operating margin 2001-2004
Slide 16
enjoy!Whitbread Operating margin Positive like-for-like margin
growth Increase in proportion of leasehold sites Labour cost rises
Pricing impact
Slide 17
enjoy!Whitbread Distribution
Slide 18
enjoy!Whitbread Distribution growth (bedrooms) 2000-2008E
Slide 19
enjoy!Whitbread Travel Inn the UKs leading hotel brand
Slide 20
enjoy!Whitbread Distribution growth avenues for expansion
Organic expansion in tandem with Whitbread pub restaurants Capital
& Metro sites in major UK cities the right format for the right
location Management contracts RoadChef Joint ventures Spirit Group
M&A Strategic acquisitions at the right price
Slide 21
enjoy!Whitbread Travel Inn County Hall Opened: 1998 Bedrooms:
313 Room rates: 84.95 (Mon-Thurs) ; 79.95 (Fri-Sun) Occupancy:
91.6% Employees: 64 + 6 management (+35 contract cleaners)
Slide 22
enjoy!Whitbread Appendix
Slide 23
enjoy!Whitbread Mike Tye managing director, Travel Inn Career
highlights: 2003-present: managing director, Travel Inn 2001-2003:
managing director, Costa Also: marketing & strategic planning
director, Whitbread Restaurants sales & marketing director,
Whitbread Inns managing director, Aramark Food Services Plc brands
director worldwide hotels, Forte Age: 50
Slide 24
enjoy!Whitbread Travel Inn
Slide 25
enjoy!Whitbread Whitbread Hotel Company (Marriott)
Slide 26
enjoy!Whitbread Glossary of terms General Like-for-like
salesPeriod over period change in total sales, less sales generated
by businesses acquired or disposed of and retail outlets opened or
closed during 2002/3 and 2003/4 Return on CapitalOperating profit
divided by period end net assets. (Where average ROCE is quoted it
is based on the average of opening and Employed (ROCE) closing net
assets.) Operating marginOperating profit expressed as a percentage
of sales Hotels Achieved Room Rate (ARR)Hotel accommodation income
divided by the number of rooms occupied by guests OccupancyNumber
of hotel bedrooms occupied by guests expressed as a percentage of
the number of bedrooms available in the period Yield (RevPar)Also
known as "revenue per available room" this hotel measure is
achieved by multiplying the ARR by the occupancy rate Income before
fixed costsHotel operating profit before directly attributable
fixed costs (such as rent, rates, margin (IBFC) insurance, etc )
and central costs divided by hotel sales Profit per room Hotel
operating profit ( after allocating central costs) divided by the
number of rooms available