Whitbread, the proprietor of Premier Inn, selects Severn Trent's CEO as their new chairwoman.
Whitbread Announces Christine Hodgson as New Chair, Successor to Adam Crozier
Whitbread PLC, the company behind Premier Inn, has revealed that Christine Hodgson, the current chair of water company Severn Trent, will replace Adam Crozier as its next chair. In a move reported by Sky News earlier this month, Hodgson is set to assume the position following Crozier's seven-year tenure.
Hodgson joins Whitbread with an extensive career, having spent over two decades at information technology group Capgemini, where she served as chief financial officer and executive chair. Her tenure at Capgemini laid the foundation for her subsequent roles as a non-executive director of banking giant Standard Chartered and betting firm Ladbrokes. In 2020, she became chair of Severn Trent.
During her time at Severn Trent, Hodgson oversaw the company's commitment to environmental projects and sustainable practices. Among these initiatives, Severn Trent utilizes anaerobic digestion, hydropower, wind turbines, and solar panels for renewable energy generation.
Throughout her tenure, Severn Trent has faced scrutiny over its environmental record, similar to the rest of Britain's water industry. In 2024, the company was fined £2 million by the Environmental Agency for illegally spilling around 260 million liters of sewage into the River Trent. This fine followed a £1.5 million penalty in 2018 for illegal discharges from four treatment works in Worcestershire between February and August of that year.
In the face of these challenges, Severn Trent is investing £15 billion over the next five years to improve infrastructure while keeping water bills the second-lowest in England.
Whitbread's senior independent director, Richard Gillingwater, acknowledges Hodgson's extensive experience in leading high-profile consumer and technology businesses, which he believes will be invaluable for Whitbread's growth moving forward.
Crozier led Whitbread through the Covid-19 pandemic, navigating difficult conditions as stringent travel restrictions hampered demand for hotel stays but ultimately guiding the company to recovery following the lifting of lockdown measures. During his tenure, Whitbread has committed to a £500 million investment, plans to operate 98,000 hotel rooms by 2030, and is targeting an additional £300 million in profit by 2030.
Hodgson's appointment comes as Whitbread nears completion of this significant investment, with the company reporting a decline in pre-tax profits in the year to 27 February, primarily due to the closure of several underperforming branded restaurants. Despite this setback, Whitbread remains optimistic about its future prospects, eyeing further growth as it positions itself to become Europe's leading budget hotel business.
Whitbread's shares were 1.4% higher at £28.37 on Tuesday morning, but they remain around 5% down since the beginning of the year.
References:
- Whitbread targets an extra £300m in profits by 2030 after branching out beyond hotels
- https://www.telegraph.co.uk/business/2022/10/29/whitbread-targets-extra-300m-profits-2030-branching-hotels/
- Whitbread's pre-tax profits decline as it shuts down underperforming restaurants
- https://www.bbc.co.uk/news/business-61415508
- Severn Trent's wide-ranging strategy prioritizes the dual challenge of meeting water demand and addressing climate change
- https://www.timesofmalta.com/articles/view/20230221/business-news/severn-trents-wide-ranging-strategy-prioritizes-the-dual-challenge-of-meeting-water-demand-and-addressing-climate-change.783051
Christine Hodgson, with her extensive background in the finance industry, particularly her time as a non-executive director of banking giant Standard Chartered and betting firm Ladbrokes, will bring valuable experience to her role as the new chair of Whitbread PLC, a business heavily invested in the hospitality and banking sectors. As Hodgson steps into her new position, she will oversee Whitbread's ongoing investment in improving its infrastructure, much like her efforts at Severn Trent, where she invested £15 billion over the last five years for boosting water supply and sustainability.
