In 2008, comedian Lenny Henry appeared in his first Premier Inn advert. He quickly became the face of the budget hotel chain, filmed snuggling down in crisp white sheets amid a purple colour scheme. The marketing campaign cemented Premier Inn’s reputation for providing clean and comfortable accommodation. However, it is a less famous name that turns this dream into a reality every morning.
Tip style
Growth
Risk rating
High
Timescale
Medium Term
Bull points
- Easing energy costs
- Resurgent demand
- Plenty of cash to play with
- Recent profit upgrades
Bear points
- Weakness in workwear division
- Highly cyclical
Johnson Service Group (JSG) launders linen for hotels and restaurants, and counts Whitbread’s (WTB) Premier Inn as its largest customer. It also rents out staff uniforms, processing more than 1mn garments every week. It’s not glamorous work, but it does it well, retaining impressive numbers of customers each year.