Read the information provided on the company in 'Materials', 'Part 1'.

Evaluate the way in which principal events in the company's history might have influenced its vision, mission, values, goals and shaped the company's strategy.

Part 1 Whitbread PLC

1.1 A focused hotel group

Whitbread is the owner of Premier Inn, the UK's biggest hotel brand, and with a growing presence in Germany offering quality accommodation at affordable prices. With over 820 hotels in the UK and over 80,000 rooms in great locations, you'll never be far from a Premier Inn. Employing almost 30,000 people in over 1,200 Premier Inn hotels and restaurants across the UK, and serving over five million customers every month, people are at the heart of our business.

Our unique ownership operating model has enabled Premier Inn to grow at a significantly faster pace than competitors, deliver a consistently superior customer experience and generate a strong return on capital for shareholders. Whilst the COVID-19 pandemic has created an unprecedented challenge for us, we remain more determined than ever to keep growing one of the most recognised brands in the UK.

Source: Whitbread (2022a).

1.2 A unique approach

Our purpose

To provide quality, affordable hotels 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, to provide meaningful work, skills and career development opportunities for our teams.

Our values

Genuine

o Really caring about our customers

Confident

o Striving to be the best at what we do

Committed

o Working hard for each other

Our ambition

To be the world's best budget hotel brand.

Source: Whitbread (2021).

1.3 The markets we operate in

With over 820 hotels across the UK and beyond, we really are everywhere. Having made a success of Premier Inn in the UK, we've now launched in Germany. In 2016, we opened our first hotel in Frankfurt and now have an open and committed network of over 70 hotels.

Source: Whitbread (2022a).

1.4 Our brands

We're hospitality experts, running some of the UK's most-loved brands and operating over 820 hotels across the UK and Germany as well as some of the UK's favourite restaurant chains. Whether we're providing great food and comfy rooms for our guests or working with charitable causes through our Force for Good programme, we work hard to consistently deliver on our service and standards.

1.4.1 Our hotel brands

Premier Inn: With over 820 hotels across the UK and beyond, we really are everywhere. Guests sleep in a comfy king-size Hypnos bed, enjoy Freeview TV, an en-suite bathroom with power shower and so much more. From booking to bed, we're here to help our guests rest easy.

Hub by Premier Inn: Smaller rooms, big locations. hub by Premier Inn offers smart, stylish rooms across London and Edinburgh at great prices. Each room includes a slick touchscreen control panel to change the lighting and temperature, completely free superfast Wi-Fi, 40 smart TVs, high-powered monsoon showers and relaxing Hypnos beds.

ZIP by Premier Inn: Our idea is simple, do the essentials brilliantly, then take away everything else. You get a small room, a simple stay and best of all, a price to match - from 19 a night. Now open in Cardiff.

1.4.2 Food and beverage

All our hotels have a bar and restaurant, either within the hotel or just next door, offering a wide selection of meals and hearty eat-as-much-as-you-like full English and continental breakfasts. Beefeater is one of the UK's best-loved and most well-known restaurant brands that has been welcoming guests for over 40 years, while our newest restaurant brand Cookhouse & Pub, alongside Brewers Fayre and Whitbread Inns, are great places to get together and enjoy freshly prepared dishes and delicious drinks, with a friendly service and great value. Bar+Block Steakhouse is an informal, all-day dining restaurant with a focus on high-quality steaks. Thyme is Premier Inn's in-house restaurant with a contemporary British menu.

Source: Whitbread (2022b).

2. A clear strategy: Chairman's statement in 2020/2021 Annual report

When I wrote to you this time last year, we were in the early stages of the COVID-19 pandemic and the 12 months that followed have been extremely challenging for everyone. Whitbread is in one of the worst hit sectors and we are the largest operator in it. I explained then that Whitbread was well placed to withstand the crisis, with a strong balance sheet and access to significant liquidity. I also explained that we were determined to come out of the crisis in a competitively advantaged position.

While we are not out of the woods yet, I am confident that the actions we have taken over the last year were the right ones; our balance sheet is secure and we have gained market share, which will put us in a position to succeed over the long term. Our management team has done a great job in extremely difficult circumstances, and I would like to thank them for all their hard work this year.

Our teams have needed to demonstrate great agility as we have closed, reopened and again closed sections of our estate as Government guidance has changed. Perhaps most pleasing has been our commitment to continue to invest in the business through the crisis. This has seen us grow market share in the UK and we have been able to acquire small portfolios in Germany at attractive prices, in order to build an even stronger platform in this structurally attractive market.

Lastly, I am convinced that our strategy of focusing on being one of the world's leading economy/midscale hotel brands, well positioned in structurally attractive markets, is the right one. We have clear strategy, and a strong team to deliver it.

Source: Whitbread (2021).

2.1 We have a proven strategy which is highly compelling

Whilst the impact of COVID-19 will be material on the hospitality sector, our strategic priorities are consistent with our proven plan to create sustainable shareholder value over the long-term. We expect to achieve long-term growth in earnings and dividends, combined with strong return on capital through disciplined execution in three key areas:

GROW AND INNOVATE IN THE CORE UK MARKETS (aim: Market share gains)

We will continue to grow and innovate Premier Inn, by leveraging the competitive advantages of the Whitbread operating model, including the strength and the Premier Inn brand and market-leading direct distribution and capitalising on enhanced structural opportunities.

FOCUS ON OUR STRENGTHS TO GROW IN GERMANY (Aim: growth)

The German market has the same characteristics as the UK, making it a highly attractive market for Premier Inn's international expansion. In a market with high levels of fragmentation and no market leading budget hotel brand, Premier Inn has the opportunity to replicate the success of the UK model here.

ENHANCING THE CAPABILITY TO SUPPORT LONG TERM GROWTH (aim: profit recovery at attractive roce)

Property backing and a successful efficiency programme help provide financial flexibility and the ability to invest in growth when others will be constrained.

Source: Whitbread (2022c).

2.2 About us: Being a Force for Good

We've always been about people, and we always will, so it makes sense that our sustainability programme is all about people too. It's called Force for Good. And it's about helping everyone - our customers, team members and suppliers - to live and work well.

Force for Good is grouped into three key pillars - Opportunity, Community and Responsibility. Within each area, we've set long term strategic commitments that we believe will help us reach our goal of enabling people to live and work well.

Opportunity

A team where everyone can reach their potential. No barriers to entry and no limitations to ambition.

Community

Making a meaningful contribution to the customers and communities we serve.

Responsibility

Always operating in a way that respects people and the planet.

We set key targets and goals under each of these workstreams.

Source: Whitbread (2022a).

3. History of Whitbread

Celebrating a great British business

2019

Sold Costa to Coca Cola

We focused on our growth of Costa and Premier Inn in the UK and around the world.

2016

First Premier Inn in Germany

First Premier Inn hotel opened in Germany, Frankfurt.

2000

Sold our brewery business

Sold David Lloyd Leisure, Marriott Hotels, TGI Fridays and Pizza Hut, and merged Travel Inn and Premier Lodge hotels.

1995

Purchased Costa Coffee from Sergio and Bruno Costa

1990s

Period of acquisitions

Period of acquisitions including David Lloyd Leisure, Marriott Hotels, TGI Fridays, Pizza Hut and Premier Lodge hotels.

1987

Opened first Travel Inn

1974

Opened first Beefeater

1968

By the 1960's Whitbread had spotted that the UK was developing a thirst for lager and in 1968 reached a deal to brew Heineken under licence. Within three years it had 20 per cent of the lager market.

1868

Introduced bottling of beer to become a national brand

1787

King George III and Queen Charlotte paid a visit to Chiswell street and according to the newspapers of the day, the king was 'wonderfully pleased' with the innovative steam engine.

1784

A modern man, Samuel Whitbread was a pioneer of new brewing techniques and in 1784 installed the first ever steam engine at the brewery, designed by famous engineer, James Watt.

1750

Samuel Whitbread created the first purpose-built mass-production brewery in the UK, when he moved his brewing operations to Chiswell Street on the eastern rim of Georgian London. Over the following years, Whitbread became a household name throughout the country.

1742

Samuel Whitbread went into partnership with Godfrey and Thomas Shewell on the 11th of December 1742.

Source: Whitbread (2022d).

References for Part 1

Whitbread (2021) Whitbread PLC: Annual report and accounts 2020/2021. Available at: https://cdn.whitbread.co.uk/ media/ 2021/ 05/ 05141427/ 23076_Whitbread_AR2020_web.pd (Accessed: 6 April 2022).

Whitbread (2022a) About us. Available at: https://www.whitbread.co.uk/ about-us/ (Accessed: 6 April 2022).

Whitbread (2022b) Our brands. Available at: https://www.whitbread.co.uk/ about-us/ our-brands/(Accessed: 6 April 2022).

Whitbread (2022c) Our business model and strategy. Available at: https://www.whitbread.co.uk/ about-us/ our-business-model/ (Accessed: 6 April 2022).

Whitbread (2022d) History of Whitbread.Available at: https://www.whitbread.co.uk/ about-us/ our-history/ (Accessed: 22 March 2022)