Whitbread goes unconditional on new hotels at Heathrow and Gatwick

150 150 Daniel Fountain
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Premier Inn has gone unconditional on deals for two new hotels at London’s leading airports, creating a total of 1,030 rooms.

Premier Inn will lease the hotels from companies owned by the Arora Family Trust, which has secured funding for both sites. The two will be built out as ‘developer turn-key’ deals. Development has already started on site at a location close to Heathrow, Terminal 5, to develop a 400-bedroom Premier Inn hotel, funded by Aviva. It is expected to open in the next 18 months.

At Gatwick’s North Terminal, Prupim is funding a 630-bedroom Premier Inn which will be the largest in the Premier Inn portfolio. Work is yet to start on site and the hotel is expected to open in the next two years.

The news reinforces Premier Inn’s position as the largest UK airport hotel operator. The new hotels form part of Whitbread’s plans to grow its Premier Inn portfolio across the UK to 55,000 rooms; initial plans for both sites were announced by Whitbread in September 2009.

Derek Griffin, Head of Acquisitions – Greater London, Whitbread Hotels and Restaurants, said: “These are fantastic prime sites at the UK’s two largest airports and, with funding secured, show once again just how attractive an investment proposition Premier Inn is.

“The success of the budget airlines has shown that there is an increasing demand for low-cost travel. That includes accommodation and we are in a prime position to capitalise on this.

“We are excited to be working with the Arora Family Trust and are looking forward to exploring further opportunities together in the future.”

Surinder Arora of Arora Hotels, said: “I can confirm that the Arora Family Trust is delighted to have assisted in getting development funding to build these Premier Inns at such strategic locations. We look forward to working closely with Premier Inn on other opportunities that arise within the Trust’s property portfolio”.

Daniel Fountain / 02.03.2011

Editor, Hotel Designs

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