Premier Inn owner Whitbread has unveiled plans to return another £2 billion to investors following its Costa Coffee sale and slash costs by a further £220 million.
Whitbread said it also saw potential to double the Premier Inn hotel chain to more than 170,000 rooms, including at least 110,000 in the UK, as part of a strategy update to investors.
It currently has over 74,000 rooms in the UK.
Whitbread shares rose nearly three per cent as investors cheered plans to return cash from the mammoth £3.9bn sale of Costa to Coca-Cola.
The group's share buy-back plans mean it will be returning £2.5bn in total to investors, having already kicked off a £500m programme in January after the Costa sale.
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On the cost cuts, Whitbread said it would look to make the additional savings over the next three years.
Whitbread is already the biggest operator in the UK budget hotels market with Premier Inn, with an 11% of the 700,000 rooms currently on offer.
Crowne Plaza, Hotel Indigo and Holiday Inn Hotels owner InterContinental Hotels Group is expanding its luxury footprint after acquiring Six Senses Hotels Resorts Spas for £300 million.
The FTSE 100-listed hotel operator, which has hotels across Scotland, said the cash sum includes all of Six Senses' brands and operating companies but it does not include any real estate assets.
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Six Senses currently manages 37 spas and 16 hotels and resorts, with 18 management contracts signed into its pipeline, and more than 50 further deals under active discussion.
Packaging firm DS Smith has announced the appointment of Serco chief executive Rupert Soames as non-executive director.
Mr Soames has previously headed up power generation equipment rental firm Aggreko, and also led Misys's banking arm.
Chair Gareth Davies said: "I look forward to working with Rupert on the DS Smith board and to gaining the benefit of both his operational and corporate experience. I am sure he will make a very positive contribution."
DS Smith shares were up 4.7 per cent today at 352p.
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