Premier Inn to Expand Budget Hotel Empire in Germany Through Acquisitions
Photo Caption: A guest room in a Premier Inn Munich budget hotel. Source: Whitbread.
Skift Take
Branded rivals Ibis, B&B, Motel One, and Best Western better watch out. UK-based brand Premier Inn is hungry to grow in the large German market.
Premier Inn, the UK's largest hotel chain, wants to expand its budget brand in the larger German market — partly through mergers and acquisitions.
"The strength of our balance sheet means we also have the flexibility to purchase attractive freeholds and execute bolt-on M&A [mergers and acquisitions] in Germany," said Hemant Patel, chief financial officer of parent company Whitbread during an earnings call on Tuesday. "Our strategy in Germany is clear: to reach scale, replicate our UK model, and deliver attractive rates of return."
On March 2, Premier Inn acquired six hotels with about 900 rooms in Germany that it's refurbishing and converting to its brand. That deal brings its total open hotels in Germany to 5
