Showing posts with label Whitbread. Show all posts
Showing posts with label Whitbread. Show all posts

New Chief Andy Harrison of the Whitbread must retain profits for shareholders

Transformed from a group of disparate recreation was still hung on his past as a brewery in targeted budget hotel, restaurants casual and business coffee, his time as head of the 268-year-old company was certainly something to be grilled.

Fittingly, the place was Marriott County Hall, which, although no longer a Whitbread property, has been renovated after standing empty for 10 years Parker when he was head of the division of hotels.

As Parker himself pointed out in his speech of retirement, when he joined first Whitbread in 1992 the country was led by a Conservative Government, had just the Gulf war and was in a récession.Comme went note, although some things change, some things remain the same, with all these dominant factors now.

But as he moves to new pastures and pluralistic life - within a week after it takes place on 25 November, there the meetings of the Council for its variety of non-executive roles in Dubai, Paris and Barnstaple - what will become of the FTSE 100 valiant?

On the part of the President, Anthony good customers and new Chief Executive, Andy Harrison, formerly of easyJet, it is certain that future society, at least in the short term is defined.

Harrison comes from a company focused on the client with a focus on costs, and when it comes to his take on the Whitbread is likely to be evolution rather than revolution.

Habgood is a strong Chair with a clear interest in the company - after spending most of the week last in China on the trade mission of the Prime Minister to boost the ambitions of the Costa coffee in the country - and should be applauded for its stewardship of the company in the past five years, which has facilitated the growth of Parker stewardship.

But as exit Parker poignancy times should be used not only to look back, but in haste.

Some quietly questioned if function Thursday evening Whitbread we have know it remains intact, or if the reign of Harrison, rather like Parker day will be remembered for arguments with shareholders.

Although Whitbread investors are sitting quite-£_100 invested in Whitbread in 2004 is now worth £ 270 - shareholders did not tend to remain filled for longtemps.Si Harrison can keep strong yields, the status quo will permise.Si this is not the case, don't be surprised if vultures start circles.

Dan Akerson, CEO of General Motors and its equipment to the team for their pre - IPO, visit in London tomorrow, life raft in the town of institutional investors wait in wells to hear the pitch of the car manufacturer.

The basic message, of course, will be that this time be différent.Gros debt crippiling once become society - through of last year and a chapter 11 bankruptcy process pieces exchange debt actions - and with a new management team in place and a resurrected with emphasis on key markets strategy, GM is clearly a proposal of different investment it was again this time two years ago.

Many who hear Akerson height will be knees it until and, as the Pope is close, will be sign up for a slice of equity .but some investors like the proverbial elephant, never forget and will not be easily persuaded to sign a second time.

Yes, it was a company is swamped by his pile of debt (£ 38bn) $62bn and something was arriver.Mais if the agreement which has been enacted - which saw the United States and Canadian Governments take on 61pc GM equity again to finance restructuring - was fair for all is a moot point.

GM of somewhat miraculous return to the form - that it had given benefit issuers $ in his recent third quarter - and its expected return to public procurement, even if it is positive for its workers, only will not greeted by everyone, especially shareholders are cancelled first autour.

James.Quinn@Telegraph.co.UK


View the original article here

When Alan Parker relocated as Whitbread beer anyone hotels I have, they are now

 

"I then fly back, fly to Paris for another board meeting, come back and drive to Devon, where I'm chairman of the board of governors at my old school. I hope it's not always going to be like that."


In between the duties of his non-executive directorships – at Dubai hotel group Jumeirah and Kesa Group, owner of Comet electrical stores – Parker also plans to realise his life-long ambition of sailing across the Atlantic.


He'll do that in stages, but it could take a while if he realises his remaining corporate ambition, which is to use his six years' experience as chief executive to become chairman of a large, UK-quoted company.


There should be no shortage of offers. When Parker was promoted from running Whitbread's hotels division in 2004, sceptics bemoaned the appointment and urged a corporate break-up.


Six years on, Parker has delivered a total return of 147pc, with Whitbread shares increasing 107pc, compared with a 29pc rise in the FTSE100 index.


Last week, the company, 268 years old, announced a 28pc increase in underlying interim pre-tax profits, which was boosted by strong growth at Costa Coffee, the UK's largest coffee shops chain, and Premier Inn, Britain's biggest budget hotels business.


Whitbread: Shares, news, charts


When Parker became chief executive Whitbread had 240 budget hotels (then called Travel Inns) and 346 Costa stores, including 40 overseas outlets. Now, there are 585 Premier Inns and 1,716 Costas.


"When I was appointed, the best thing that was said was that I was a safe pair of hands and a fast pair of legs," he says. "But nobody has built more hotels than us and no one has ever opened more coffee shops in this country.


"Profits have never gone down, even in the recession, contrary to any other quoted hotel and restaurant company that I know of. And we're still in real growth."


When Parker became CEO, Whitbread was a leisure conglomerate with 10 divisions, each with their own boards. Within weeks he spent £560m on Premier Lodge, which gave Whitbread more than half of the UK budget hotels market.


Nine months later, he sold the four and five-star Marriott UK franchise, which he had bought as head of Whitbread's hotels arm.


Disposals of restaurant chains TGI Friday and Pizza Hut followed, along with Whitbread's stake in soft-drinks group Britvic.


Then Parker pulled off the £925m sale of David Lloyd Leisure in August 2007 – weeks before the credit marketed seized up. All this didn't silence his critics however.


"Six years ago, it was all about the break-up of Whitbread," he recalls. "It was a conglomerate that didn't add any value to its individual businesses and therefore they would be better standing alone.


"People said: 'Why on earth are you bothering with all these coffee shops? Surely you're not the right person to run them.'


"Then, if you go back three years, people were saying: 'Why do you own all this property?' The previous managements of some of our contemporaries for whatever reason decided to leverage their balance sheets.


"Now people are saying: 'Didn't you do well? Didn't you make the right decision?'"


Parker says that, having sold its beer and tenanted pubs operations, Whitbread had lost its "heart and soul" when he became chief executive. A question often asked in the financial pages was: "What is Whitbread for?"


"Internally there was a bit of a vacuum and externally there was a burning platform of survival," he says.


His approach was to elevate Whitbread from its long-running status as a "cost-of-capital company" that was only just delivering returns above its cost of capital.


That dictated the exits.


On the other hand, Costa, which Whitbread had bought for £20m in 1995, boasted returns on capital of 30pc. "I saw Starbucks and thought there was room for two," he says. "Six years ago there were the three ugly sisters of Starbucks, Nero and Costa and now we're bigger than both of them combined in the UK.


"I'm absolutely convinced that nobody could have run and developed Costa better than us. If it had been in private equity hands, it would have been flipped at least twice and it would not be of the size or profitability that it is today.


"It's number one in the UK and has just had a 55pc increase in profits. We've grown the international business to just under 600 stores. Private equity would not have done that."


However, Parker admits there was a moment of realisation in his first month that he was in the hot seat now and it was all down to him. Did the pressure ever get to him?


"No," he says firmly. "It's water off a duck's back. That's one of the things you learn being the chief executive of a big company. If you don't have a thick skin when you start, you certainly have one when you finish – or you don't survive. I think we can make running businesses over- complicated. The key issues are all about having the right strategy, getting the right people around you and having the ability to orchestrate.


"It's not an accident that Whitbread today is in value for money brands. These are fundamental tough decisions we took."


Indeed, the budget nature of Whitbread's hotels makes Parker confident that Whitbread, under incoming chief executive Andy Harrison, can weather Britain's austerity climate.


He's broadly happy with last week's Spending Review and doesn't think public sector cuts and job losses will mean that Costa's customers will cut back on their skinny lattes.


"There are no signs in our business of any double-dip recession or negative impact of the cuts at the moment," he says. "In terms of Costa, the market reaction has been outstanding. We've had 34 consecutive quarters of like-for-like sales growth. We offer 25 minutes in a safe, secure, well-maintained, warm environment with a choice of quality food and that's seen as value for money in this day and age. I think we're in a very good place for this age of austerity. With our hotels and restaurants, the market is coming towards us.


"People in large companies are moving out of full service hotels and seeing the value that we operate at. It's one of the reasons we're had an increase in occupancy from 70pc to 79pc this year."


Whitbread is planning more customer initiatives to follow the success of its Costa Coffee Club loyalty scheme, which launched in March and has already achieved three times its target of 1m members.


Costa also plans to have 3,000 stores – 1,600 in the UK and 1,400 abroad – by 2015 and Premier Inn aims to expand from 42,000 UK rooms to 55,000 by 2014.


"Yum Brands, which owns KFC and Pizza Hut, has 3,500 branches in China," says Parker. "We have 71, so there's a huge opportunity. Starbucks doesn't have anything in India, where we do. They have a little bit in Russia. And we're bigger than them in Central Europe and the Middle East."


With Premier Inn, Whitbread has also tested overseas markets, with a hotel in Bangalore, India, two more being built in Pune and Delhi, three in Dubai, one in Abu Dhabi and another in Qatar.


However, Parker believes the UK, where Premier Inn still has only 7pc of the nation's hotel rooms, will continue to be the main focus.


An alternative to organic growth would be the acquisition of rival Travelodge but Parker walked away from a £900m deal to buy the chain in 2008 and thinks a bid is now unlikely. "We've looked at Travelodge seriously on a couple of occasions," he says. "You never say 'never' but I think the focus for us now is very much on organic building. We want nice modern, new, well-located hotels and we don't have a strategy of making a large chain acquisition. But, of course, if the price is right, we'd have to consider it."


Born in London to parents who ran a café near Arsenal's old ground in Highbury, north London, Parker worked there from the age of 10.


After university, he worked for the hotel businesses of Truman, and Scottish & Newcastle Breweries before joining Bass, where he went to Brussels and Frankfurt as senior vice-president for Holiday Inn Worldwide.


He joined Whitbread in 1992, just after its chief executive, Peter Jarvis, had told his senior managers that the hotels business was the only part of the company he was ashamed of.


Parker bought Marriott's 16 UK hotels and converted Whitbread's 12 Country Clubs hotels to the marque, sold the 50-strong Lansbury coaching inns chain and began building up Travel Inn, which had just 24 hotels when he arrived. Now he's moving out of UK hotels for the first time in his career. "I'm a child of the industry," he says.


"For me to have had the opportunity of being chief executive and creating in the UK this number one hospitality company would have been my parents' wildest dream."


So what's his dream now, beyond that cross-Atlantic trip? Watch this space is all he will say. We will.


Alan Parker CV


Age: 63


Widower with two grown-up children


Lives: London


Car: Lexus


Favourite books: Swedish writer Stieg Larsson's Millennium trilogy


Interests: Arsenal FC, sailing – owns a 56ft yacht called Oyster Reach


View the original article here

'Fed caffeine' the Whitbread profits soar

Before profit increased 151 million pounds in six months to September 2 £ 105. 9 m, driven by strong growth and new openings hotel and café. Revenues grew by 14 5pc 805 million from £.

Costa coffee recipes were higher at £ 198 28pc. 5 m, so that more big budget hotel brand Britain's Prime Minister Inns, delivered an increased revenues to £ 355 14pc.7 m.

Regional income per room on the first Inn rose 8 5pc in a regional area 2 6pc average hotel.The group opened 795 new classrooms in the first half and plans to open at least 1,700 additional rooms in the second.

The company also opened open coffee Costa, 116 stores including stores operated by the company United Kingdom - 62-32 and 54 stores franchise - 33 in the UK .the sales type-for-like - those a stores open for one year or more - have increased by 8 5pc.

"Whitbread has performed strongly in both good times and during the recession and is positioned to grow in the current environment," said Alan Parker, Chief Executive.

Whitbread, which holds the Beefeater pub and brewing exhibition chains of restaurants, pay an interim dividend of 11.25 p-a-part January 11 until 16. 6pc on last year.


View the original article here

Powered by Blogger