Whitbread : 2022/23 Annual Report and Accounts

Investing to win

Annual Report and Accounts 2022/23

Whitbread is the owner of Premier Inn, the UK's biggest hotel brand, with over 83,500 rooms in over 840 hotels and a growing presence in Germany with 9,000 rooms in 51 hotels, offering quality accommodation at affordable prices in great locations.

People are at the heart of our business. We employ over 40,000 team members in over 1,600 Premier Inn hotels and restaurants across the UK and Germany and serve over five million customers every month.

We are investing to win.

Performance
Statutory revenue	Adjusted profit/	Statutory profit before tax
	(loss) before tax†
£2,625m	£413m	£375m
2021/22 £1,703m	2021/22 £(16)m	2021/22 £58m

Adjusted operating cash flow†	Total cash capex UK†	Total cash capex Germany†
£719m	£447m	£99m
2021/22 £404m	2021/22 £171m	2021/22 £90m

Lease adjusted net debt	Net cash†	Adjusted basic earnings/
to FFO†		(loss) per share†
2.7x	£171m	162.9p
2021/22 4.4x	2021/22 £141m	2021/22 (2.5)p

Statutory basic earnings	Dividend per share	Total dividend
per share
138.4p	74.2p	£149m
2021/22 21.1p	2021/22 34.7p	2021/22 £70m

• See pages 206 to 210 for definitions of alternative performance measures. This footnote is referenced throughout the report.
  Throughout this report all percentage growth comparisons are made comparing the current year (2022/23 performance for to 2021/22 that was partially impacted by the pandemic and 2019/20, with 2019/20 being the last financial period before the onset of the pandemic)

Our year at a glance

2022/23 has been an outstanding year for Whitbread

Our strategy of investing through periods of uncertainty has underpinned our strong performance in the UK and provided real momentum as we continue to expand in Germany.

We have a long track record of generating attractive and consistent rates of return for our shareholders whilst also ensuring we remain a Force for Good.

We have emerged from the pandemic with a strong balance sheet and significant opportunities for growth, and remain confident in delivering attractive long-term returns for shareholders.

Strategic report Governance Financial statements Other information

New		Investing
leadership		to win
		Read more on pages 8 to 11				Read more on pages 31

People		Embedding		Structured
and culture		sustainability		governance
		Read more on pages 36 to 41				Read more on pages 42 to 53				Read more on pages 68 to 115

Strategic report

1. Whitbread at a glance

1. Our investment case

1. Chairman's statement

1. Chief Executive's review

1. Business model

1. Our strategic framework

1. Growth and innovation in the UK

1. UK market, strategy and performance

1. Focus on our strengths to grow in Germany

1. German market, strategy and performance

1. Enhance our capabilities
   to support long-term growth

1. Long-termgrowth strategy and performance

32	Chief Financial		Governance
	68	Governance at a glance
	Officer's review		70	Chairman's introduction
36	Chief People Officer's review			to governance
40	Whitbread Inclusion Networks		72	Corporate governance
42	Force for Good		74	Board of Directors
52	Taskforce on Climate Related		78	Executive Committee
	Financial Disclosure		79	Board activities during
53	Transition Plan			the year
54	Section 172 statement		80	Board evaluation
55	Stakeholder engagement		84	Q&A with Horst Baier
	and sustainability		86	Audit Committee report
59	Non-financial		90	Nomination Committee
	information statement			report
60	Principal risks		92	Remuneration Committee
	and uncertainties			report
67	Viability statement		95	Remuneration at a glance
			98	Directors' remuneration
				policy
			103	Annual report on
				remuneration
			116	Directors' report
			121	Directors' responsibility
				statement
			122	Assurance report
			124	Independent auditor's report

Consolidated accounts 2022/23

133 Consolidated income statement

1. Earnings per share
2. Consolidated statement of comprehensive income
3. Consolidated statement of changes in equity
4. Consolidated balance sheet
5. Consolidated cash flow statement
6. Notes to the consolidated financial statements

Whitbread PLC

Company accounts 2022/23

1. Company balance sheet
2. Company statement of changes in equity
3. Notes to the Company financial statements

Other information

1. Glossary
2. Alternative performance

measures

211 Shareholder services

Whitbread Annual Report and Accounts 2022/23

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Whitbread at a glance

What sets us apart?

Our ambition

To be the world's best budget hotel brand

Our purpose

To provide quality, affordable hotel rooms for our guests, to help them to live and work well and to positively impact the world around us. With no barriers to entry or limits to ambition, we will provide meaningful work, skills and career development opportunities for our teams

Our operating model

We own, operate and manage a large network of hotels and restaurants. With significant asset-backing, our vertically integrated model ensures the consistent delivery of a high-quality product for our guests, attractive and sustainable rates of return for our shareholders whilst having a positive impact on our other key stakeholders.

  Read more on pages 12 and 13

Our values

We care passionately about our guests, our teams and the communities we serve. Our culture is driven by each of our core values below:

Genuine

Really caring about our customers and team

Confident

Striving to be the best at what we do

Committed

Working hard for each other

Where we operate

United Kingdom1

Germany3

Annual Report and Accounts 2022/23

The UK is a large and profitable hotel market that is supported by high levels of domestic and inbound travel. The market has evolved in recent years, especially following the pandemic, with a significant decline in the independent sector. In contrast, the branded budget hotel sector, including Premier Inn, has grown.

Premier Inn is the clear market leader in the branded budget sector with over 83,500 rooms in 847 hotels across the UK and Ireland.2 As a result, wherever our guests want to stay, there is always a Premier Inn nearby. Whether travelling for business or leisure, you can always rely on getting a great night's sleep at an affordable price and know you will receive a warm welcome from our friendly teams.

  Read more on pages 16 to 21

The German hotel market is 40% larger than the UK and shares many of the attractive structural characteristics that drove Premier Inn's success in the UK. Germany represents a significant growth opportunity and we are committed to becoming the number one budget hotel brand and delivering attractive long-term returns on capital.

Having just six hotels open in March 2020, Premier Inn now has 51 operational hotels1 and a committed pipeline of 37 further hotels that are planned to open over the next few years. With approximately £1 billion already committed1, we have a growing national footprint and a clear pathway to becoming Germany's biggest budget hotel chain.

  Read more on pages 22 to 27

Whitbread

1. Includes one site in each of Guernsey and the Isle of Man and two sites in each of Jersey and Ireland.
2. As at 2 March 2023
3. Includes one site in Austria.

2

Strategic report		Governance		Financial statements		Other information

Our brands

Our hotel brands

Premier Inn is the UK's largest hotel brand and has a growing presence in Germany. Our consistent customer proposition is synonymous with high-quality, great value and excellent customer service. We offer comfort that everyone can count on, with a choice of rooms, flexible rates and a great breakfast to start your day.

'hub by Premier Inn' is one of our more recent hotel concepts, offering a compact, digitally-advancedin-room experience at a great price. We now have 15 hub hotels open across London and Edinburgh, and a committed pipeline to open more over the next few years. Meanwhile, at 'ZIP by Premier Inn', you get a compact room, a simple stay and, best of all, a price to match.

Our food and beverage brands

Our quality food and beverage offer, especially breakfast,

is a key part of the overall guest experience. Our hotel guests have access to either a restaurant within the hotel or just next door. We have a wide range of brands enabling a broad and tailored food and beverage offer for both our hotel guests and external customers, all at an affordable price.

Force for Good

You will find references to the three elements of our sustainability programme throughout this Annual Report, each is identified by its own distinctive icon below:

		Opportunity				Community				Responsibility
		We want all of our team				Making a meaningful				Always operating in a way
		members to reach their				contribution to the				that respects people
		potential with no barriers to				customers and communities				and the planet
	entry and no limits to ambition				we serve
We will be for everyone, championing			We will make a positive contribution				We will source responsibly
	inclusivity across the organisation				to the communities we serve				and with integrity
		and improving diversity
		Team member wellbeing will			Working collaboratively with our				We will reduce our
		be considered across all of			teams and supply chain, we will				environmental impact
		our business areas			support our charity partners to
						meet their goals
We will have industry-leading training			We will support the wellbeing of				We will always do business
		and development schemes			our customers and team members				the right way
		Read more on pages 46 and 47				Read more on pages 48 and 49				Read more on pages 50 and 51

Whitbread Annual Report and Accounts 2022/23

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