Premier Inn: Changing the face of budget hotels

This case study explains how Premier Inn, the budget hotel chain in the UK, built its brand to expand its business despite a stagnant market.

Premier Inn: Changing the face of budget hotels

Principal author: Jeremy Poole, RKCR/Y&RContributing author: Eleanor Grant, RKCR/Y&R

Introduction

This is the story of a business that has experienced unprecedented growth in the last six years.

Premier Inn has expanded capacity by over 50% from 36,000 rooms to 55,000 (the equivalent to adding the whole of Hilton's UK current hotel chain to their existing estate) while maintaining near full occupancy and increasing revenue per available room.

Yet this has been achieved against a backdrop of static demand and declining revenue in the sector.

To meet the business challenge...

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