The Times is reporting speculation that Whitbread is planning a budget hotel brand.
With 650 Premier Inns already established, Travelodge beginning to fight back, and a number of ‘budget’ offerings in prospect, Whitbread could well be considering its response.
Foremost amongst the budget initiatives is recently announced ‘Moxy’: the Marriott/Ikea offering which will seek to combine style with economy.
The combination of off-site modular construction – already in use by other operators – smaller bedrooms, and Whitbread’s experience, resources and buying power, would enable Whitbread to offer a formidable competitor.
Does Whitbread believe such a move is necessary, urgent, and would deliver the returns it seeks? The hotel industry will be watching with interest.
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