Proactive Investors - Run By Investors For Investors

Whitbread launches no-frills Zip hotel chain as Premier Inn’s owner seeks to refocus after Costa sale

The group said rooms will cost from £19 a night - Premier Inn prices typically start at £49 - and will be less than half the size of a standard Premier Inn room, at 8.5 square metres
Premier Inn
Whitbread said the first Zip hotel, with 138 rooms, will open in the Roath district of Cardiff early next year

Whitbread PLC (LON:WTB) is launching a no-frills hotel chain with small pod-style rooms as Premier Inn’s owner seeks to refocus its business after the sale of cafe chain Costa Coffee to Coca-Cola Corp.

In a news release on its corporate website, the FTSE 100-listed firm – which reports its first-half results on Tuesday -  said the new hotel concept, called Zip by Premier Inn, will be located on the outskirts of major towns and cities.

READ: Whitbread’s interims to be overshadowed by August’s £3.9bn sale of Costa coffee business to Coca-Cola

The group said rooms will cost from £19 a night - Premier Inn prices typically start at £49 - and will be less than half the size of a standard Premier Inn room, at 8.5 square metres.

The first Zip hotel, with 138 rooms, will open in the Roath district of Cardiff early next year, Whitbread said, and it has secured a second site in Southampton, where 140 rooms are planned.

Whitbread’s chief executive, Alison Brittain, said the spin-off would cater for the “ultra-price-sensitive customer looking to zip in and out”.

She added: “It offers us an exciting new platform for growth and will give us access to a broader customer base, attracting those guests who are on a particularly tight budget but still expect and deserve the basics done brilliantly.”

No-frills additions

The firm said the Zip rooms - created by PriestmanGoode, the design consultancy behind first-class cabins for Air France, Lufthansa and Swiss airlines- will feature lightboxes, en-suite power showers, 24-inch televisions and twin single beds that can be pushed together to create a double.

It said Zip hotels will have communal areas that serve breakfast from £3.95 and transform into a bar in the evenings, and there will be an ironing room on every floor.

Similar to no-frills airlines, there will be other optional paid-for extras, with rooms not cleaned daily for guests staying for more than one night but additional cleaning can be purchased for £5 per day, the firm added.

Premier Inn, Britain’s biggest budget chain has nearly 800 hotels, including some in Germany and the Middle East.

Whitbread sold its Costa chain for £3.9bn in cash to Coca-Cola in August to focus on its hotels business.

View full WTB profile View Profile

Whitbread plc Timeline

Related Articles

Oil pollution
July 02 2018
A name change might be in order if PCG pulls the trigger on two investments it is mulling
Festival crowd
August 20 2018
There could be a potential uplift of in both revenue and underlying earnings if the firm manages to capture a slice of the UK's 4mln festival-goers
ZoomAway Travel Inc embracing blockchain, which is set to push out middle man in hospitality and act
January 11 2018
The firm plans to begin rolling out cryptocurrency payments into its white label and registration management system (RMS) clients

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use