Key facts
- Whitbread has added 1,500 rooms to its Premier Inn portfolio in Germany and Austria through leases on eight new hotels.
- The expansion includes converting four Wyndham Super 8 hotels, two Elaya hotels, and one Mercure hotel.
- Premier Inn's German portfolio now exceeds 70 operating locations, with a room count of 14,000.
- Whitbread aims for 20,000 rooms in mainland Europe by 2030.
- The company expects its German business to become profitable in the current trading year.
- Gorgeous Smiling Hotels (GSH) is the partner for these new leases.
Premier Inn owner Whitbread is defending its expansion into Germany after an activist investor raised concerns about the strategy. The company announced it has signed leases for eight new hotels, adding 1,500 rooms to its portfolio across Germany and Austria. These new properties will be converted from existing brands, including Wyndham's Super 8, Elaya, and Mercure.
This expansion increases Premier Inn's presence in Germany to over 70 operating locations, bringing its total room count to 14,000. Whitbread has a target of 20,000 rooms in mainland Europe by 2030. The company noted that the German market has been softer than anticipated but expects its German business to achieve profitability within the current trading year. CEO Dominic Paul expressed confidence in becoming the country's leading hotel brand.
The opportunity arose following a merger involving Gorgeous Smiling Hotels (GSH), which created a business with 85 hotels across Germany. GSH works with franchise partners including InterContinental Hotels Group, Hilton, and Wyndham, and also operates its own brands. The deal with Premier Inn adds another significant brand to GSH's roster of operating partners.