Whitbread: Premier Inn owner appoints Severn Trent boss as new chairwoman
Premier Inn owner Whitbread has named Christine Hodgson, who is also at the helm of Severn Trent, as its new chairwoman.
Ms Hodgson will join the FTSE 100 company on September 1, it said on Tuesday, replacing current chairman Adam Crozier, who has been in post since 2018.
She has been working as chairwoman of water giant Severn Trent since 2020, overseeing its recent decision to hike consumer bills by an average 47 per cent over the next five years.
Ms Hodgson said on Tuesday: “It’s an exciting time to be joining, as the company continues to deliver on its five-year plan, and Premier Inn’s expansion in Germany gathers pace.”
Richard Gillingwater, a senior independent director who led the selection process, said her “experience working with high-profile consumer and technology businesses” would be valuable to Whitbread.
Mr Crozier said: “It has been a privilege to lead the Whitbread board through this period of growth and change.
“I’m proud that as I leave the business, we are on course for Premier Inn to become Europe’s number one budget hotel business.”
Earlier this month, Whitbread revealed a drop in profits on the back of its recent restaurant closures and “softer” UK demand for hotel rooms.
The company, which also owns Beefeater restaurants, told shareholders that adjusted pre-tax profits fell by 14 per cent to £483m in the year to February, compared with the previous year.
It said this was driven by higher costs and the impact of Whitbread’s growth strategy from last April, which included an overhaul of its restaurant business.
The £500m plan, which executives dubbed “Accelerating Growth”, involved converting 112 branded restaurants and selling 126 more.
The company hopes this will help it build about 3,500 extra hotel rooms, eventually reaching 97,000 rooms in total.
Speaking earlier this month, chief executive Dominic Paul said the plan is “progressing well” in the UK and Ireland.
The disposal and closure of a raft of restaurants led to a significant slump in food and drink sales, which dropped 11 per cent year-on-year in the UK as the shake-up wiped out the benefit from strong breakfast sales.
Meanwhile, the group’s Premier Inn UK business saw revenues per available room dip 2 per cent due to “softer UK market demand” as the higher cost of living put pressure on consumer finances.