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Premier Inn owner Whitbread has announced plans to cut around 3,800 jobs in the UK and Ireland as part of a new five-year strategy to make £250 million in cost savings and overhaul its restaurants.

The hospitality group said it wanted to save money in light of cost pressures coming from business rates and national insurance contributions.

Its new five-year plan includes the increased cost-saving target and steps to cut capital spending by more than £1 billion.

It will also replace its 197 restaurants with an integrated food and drink model which it said was more efficient and preferred by hotel guests.

Whitbread said the plans to reduce its 30,000-strong workforce were subject to employee consultation, and that it expects to retain a significant proportion of those affected through redeployment.

Chief executive Dominic Paul said: “We always challenge ourselves to improve and, in light of significant cost increases in the form of business rates and national insurance, as well as the implied market discount to our inherent value, we’ve looked hard at the options open to us to maximise value creation over the medium and long-term.

“This has been a rigorous process and we’ve approached all options with an open mind.

“Our new five-year plan builds on our strengths and drives a significant acceleration of our strategy.”