Chief Executive's review
Our strategy - leading through change
Our ambition holds firm - to expand our leadership position in the UK and to become number one or two in our chosen overseas markets. However, we need to stay flexible in these turbulent times.
Until such time as we feel the economy can support our renewed pace of expansion, we will deliver a slower pace of growth for Premier Inn and Costa in the UK and agreed international territories.
We have three clear priorities in the year ahead:
To outperform competitors, with initiatives such as the widening of Premier Inn's distribution network and strategic revenue management. We will look to win share from the full service corporate market and launch a new campaign for the leisure market, whilst emphasising our superior food and beverage offer. Our restaurants will continue to deliver strong customer value and Costa will build on the coffee superiority messaging;
To take advantage of our financial strength through disciplined growth. Last year I announced ambitious growth plans and I am pleased that we delivered on those plans. We still have plans to grow, but will do so more cautiously in the year ahead. We will continue to develop a land bank for future use and will remain alert to the possibility of any shareholder value enhancing acquisition opportunity that may arise; and
To achieve the planned efficiencies, by continuing the work carried out last year to deliver the £25 million cost savings promised last year.
Our first hotel in Dubai - already delivering profit
International progress
This report concentrates largely on operations in the UK. However, we do recognise the importance of our ability to expand into new territories and I'm delighted at the progress of our international operations. The first overseas Costa was opened in Dubai in 1999. We now have a sizeable international estate of in excess of 400 Costa stores in 24 different markets. Costa is the second largest international coffee shop brand in the world and the more mature markets are delivering profit for the Group.
In Premier Inn, we've only just begun. We purchased a hotel in Dublin as part of the Tulip Inn acquisition and, last year, opened our first new international hotel in Dubai. This hotel is already delivering profit to the Group, which is an excellent achievement. We look forward to the opening of three further international Premier Inns, two in Dubai and one in India, later this year.
