Acquisition

Whitbread PLC 26 September 2007 WHITBREAD ACQUIRES 2000 ROOMS FOR PREMIER INN Whitbread PLC has today announced the purchase of six hotels (770 rooms) currently trading in the UK under the Tulip Inn and Golden Tulip brands and a secured pipeline of nine further sites (1300 rooms) for £44m. The pipeline hotels are planned to open in the next two years. The six hotels currently trading had an EBITDA of £2.3m in the last financial year and average occupancy of 70%. The 15 leasehold hotels will be converted to the Premier Inn brand at a cost of £9m. The current franchise arrangements with Golden Tulip Worldwide have been terminated and the six open hotels will be rebranded by the year end. Taking account of the costs of integration it is anticipated that the transaction will be marginally dilutive in the current financial year. The hotels have been purchased through the acquisition of Golden Tulip (UK) Limited and Pilot Hotels Limited from funds managed by Graphite Capital and management shareholders. The consideration, which included the discharge of existing debt, was paid in cash on completion. Alan Parker CEO of Whitbread said: 'I am pleased that we are able to buy these modern and well-located hotels for Premier Inn, the UK's largest and fastest growing hotel business. Once rebranded and integrated into our Premier Inn portfolio, our focus will be on occupancy and securing further sites in the pipeline over and above these 15 hotels. We will now have our first Premier Inn in the Republic of Ireland and will be looking for other opportunities in that country. There is clearly significant growth potential through conversions such as this and, coupled with our aggressive organic pipeline, we are well on track to reach our target of 45,000 rooms in the UK by 2010.' Media Contacts: Wendy Watherston, Tulchan Communications: 020 7353 4200 Dionne Parker, Interim Communications Director, Whitbread PLC: 07748 321557 Analysts: Christopher Rogers, Group Finance Director, Whitbread PLC: 01582 889418 Editor's note The six hotels are located at: Glasgow Newcastle Gateshead Portsmouth Leeds Castleford Dublin Airport Manchester (Golden Tulip) Secured pipeline: Bournemouth Manchester Airport Stoke/Trentham Belfast Sheffield Doncaster Gatwick York Hull About Whitbread Plc ... Whitbread PLC is the UK's leading hospitality company, managing market leading businesses in the budget hotels, restaurant and coffee shop sectors, including Premier Inn, Beefeater, Brewers Fayre and Costa. Whitbread's strategy is to create value for our shareholders by focusing investment and growing in expanding sectors of the hospitality industry, primarily in the UK but also in selected overseas markets. In the financial year to March 1, 2007, Whitbread generated pre-tax, pre-exceptional profit of £213.0m. Founded in 1742, the company is listed on the London Stock Exchange (as WTB.L) and is a member of the FTSE100 FTSE4Good indices. http:// www.whitbread.co.uk/. About Premier Inn ... Premier Inn is the UK's biggest hotel brand with over 480 hotels and more than 32,600 rooms. UK Premier Inn bedrooms are 22m(2) and feature a king size bed with quality duvet and pillow options; en-suite bathroom with shower and bath; remote control TV/radio alarm; tea/coffee making facilities; and a spacious desk area with internet access. Premier Inn offers customers a 'Good Night Guarantee' of a good quality room, comfortable surroundings and friendly service, which is unique amongst Britain's leading hotel chains. Premier Travel Inn was the first Britain-wide hotel group to sign up with national tourist boards, VisitBritain, VisitScotland and VisitWales: this means Premier Inn is now part of a new quality assessment scheme, specially created for budget accommodation. A joint venture with Emirates was announced last year to develop the Premier Inn brand in the Gulf region, with its first site in Dubai due to open in Spring 2008. Premier Inn also has a joint venture with Emaar-MGF to roll out 80 hotels in India by 2017. www.premierinn.com This information is provided by RNS The company news service from the London Stock Exchange

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