Whitbread is to open six new Premier Inn hotels in London at a cost of £100m.
The company is spending £18.5 million, cash, buying the Quality Hotel in Westminster, the Comfort Inn in Kensington and the Purple Hotel in the City of London from the Real Hotel Company. A further £12 million will be invested in converting the 400 rooms to the brand.
Three new builds make up the six in the development pipeline, located at Waterloo, Ealing and Old Street in the City they are scheduled to open by 2011.
Whitbread has also secured the first right of refusal to acquire all 12 of the remaining Purple hotels from Real Hotel Company should they be earmarked for sale.
Premier Inn is the largest hotel group in London by number of properties, with 44 hotels and 5,300 rooms. These plans will increase the total number of rooms in the Capital to 6,500, with a further pipeline of 2,000 rooms expected to be announced over the next twelve months.
Alan Parker, chief executive officer of Whitbread, said: “We have exciting expansion plans for Premier Inn in London and today’s addition of 1200 rooms is a great start. The capital is an important focus for Premier Inn, and there is an increasing need for high quality, affordable accommodation. Our further pipeline will position us as the largest hotel chain in London with at least 8,500 rooms before the Olympics in 2012”.