Mike Tye, managing director, Travel Inn

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• Mike Tye, managing director, Travel Inn

CSFB Leisure Conference 2004
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What is Travel Inn?

• UKs most widely distributed hotel brand
• 18,200 bedrooms across 304 Travel Inns
• Highest occupancy of any major UK hotel brand
• Consistently ahead of 80
• 80 Travel Inns co-located and co-managed with
  Whitbread pub restaurant brands
• C. 240 units alongside Beefeater, Brewers Fayre,
  Brewsters
• Created by Whitbread in 1987

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Why is Travel Inn so popular?

• Location
• over 300 prime sites around the UK
• Capital, Metro and roadside
• Value
• prices from 45.95 to 82.95
• Prices charged per room NOT per person

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Why is Travel Inn so popular?

• Peace of mind
• Focus on breadth of customer journey
• Consistently high product quality
• consistent pricing policy
• 100 Satisfaction Guarantee

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a Whitbread perspectiveTravel Inns share of
group operating profit
2003/4 PBITA, excluding associates
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a Whitbread perspectiveTravel Inns share of
group net assets
2003/4 net assets
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Travel Innbrand strategy

• Outstanding operational consistency.
• World-class systems
• Top ten employer
• .drives outstanding performance
• Return on capital employed
• Occupancy
• Operating margin

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Travel Innbrand strategy

• Increase distribution
• Organic growth
• Strategic MA

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Operational consistency
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Maintaining operational consistencyWorld-class
systems

• No third-party commissions - guests can ONLY book
  through Travel Inn
• One-tier reservation system recycles 1m of
  business per month between Travel Inns
• Travel Inn Business Account centralises corporate
  invoicing and generates sales of 1m per month
• On-line reservations at 27 and growing
• Introduction of new voice recognition technology
  for telephone bookings

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Top 10 employer

• Brand values
• Resonant and clearly communicated
• Only hotel company in Sunday Times 100 Best
  Companies to Work For (72nd in 2004)
• 86 satisfaction rating from employees
• Brand audit to drive standards
• Impact
• Improved employee retention
• Strong employee satisfaction strong customer
  satisfaction

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Return on capital employed2001-2004
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Return on capital employed

• Impact of work in progress year-over-year
• Increase in proportion of leasehold sites
• Overhead efficiencies
• Pricing impact

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Bedroom occupancy2001-2004
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Operating margin2001-2004
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Operating margin

• Positive like-for-like margin growth
• Increase in proportion of leasehold sites
• Labour cost rises
• Pricing impact

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Distribution
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Distribution growth (bedrooms)2000-2008E
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Travel Inn the UKs leading hotel brand
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Distribution growthavenues for expansion

• Organic expansion
• in tandem with Whitbread pub restaurants
• Capital Metro sites in major UK cities
• the right format for the right location
• Management contracts
• RoadChef
• Joint ventures
• Spirit Group
• MA
• Strategic acquisitions at the right price

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Travel Inn County Hall

• Opened 1998
• Bedrooms 313
• Room rates 84.95 (Mon-Thurs) 79.95
  (Fri-Sun)
• Occupancy 91.6
• Employees 64 6 management (35 contract
  cleaners)

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Appendix
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Mike Tyemanaging director, Travel Inn
Career highlights 2003-present managing
director, Travel Inn 2001-2003 managing
director, Costa Also marketing strategic
planning director, Whitbread Restaurants sales
marketing director, Whitbread Inns managing
director, Aramark Food Services Plc brands
director worldwide hotels, Forte Age 50
enjoy!Whitbread
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Travel Inn
enjoy!Whitbread
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Whitbread Hotel Company (Marriott)
enjoy!Whitbread
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Glossary of terms
General Like-for-like sales Period over period
change in total sales, less sales generated by
businesses acquired or disposed of and retail
outlets opened or closed during 2002/3 and
2003/4 Return on Capital Operating profit
divided by period end net assets. (Where average
ROCE is quoted it is based on the average of
opening and Employed (ROCE) closing net assets.)
Operating margin Operating profit expressed as
a percentage of sales Hotels Achieved Room Rate
(ARR) Hotel accommodation income divided by the
number of rooms occupied by guests Occupancy Numb
er of hotel bedrooms occupied by guests expressed
as a percentage of the number of bedrooms
available in the period Yield (RevPar) Also
known as "revenue per available room" this hotel
measure is achieved by multiplying the ARR by the
occupancy rate Income before fixed costs Hotel
operating profit before directly attributable
fixed costs (such as rent , rates, margin (IBFC)
insurance, etc ) and central costs divided by
hotel sales Profit per room Hotel operating
profit ( after allocating central costs) divided
by the number of rooms available
enjoy!Whitbread