EasyHotel PLC (LON:EZH) said total sales in the second half of its financial year increased by 25%, and that fundraising earlier this year will allow the chain to ramp up its growth plans.
The AIM-listed budget hotel chain said in its year-end trading statement that total system sales rose by 25% to £37.2mln, up from £29.7mln in the year-ago period. Like-for-like revenue at franchised hotels grew by 12%, and revenue per available room increased 11% at group-owned hotels.
The company, part of the easyGroup Ltd. holding company that includes budget airline easyJet PLC (LON:EZJ), said it opened five new hotels during the second half of the year, including in Barcelona, which marked the first owned hotel in continental Europe.
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The five new locations, representing 610 rooms, increased the group's portfolio room count by 42%, bringing its total network to 33 hotels and 3,068 rooms across 27 cities.
"The successful placing completed in March 2018 has enabled us to accelerate our growth plans. We are focused on expanding our developments as well as balancing our strong UK pipeline with a growing number of exciting European opportunities, creating value for our shareholders and underpinning the long-term growth of the brand,” said Guy Parsons, chief executive of EasyHotel, in a statement.
Continental Europe holds attractive opportunities, said EasyHotel, which plans to focus efforts in Spain, France and Germany. The board said there’s potential for the brand to target 10 to 15 cities in each of these three countries.
The other four hotels opened during the second half are located in Liverpool, Newcastle, Leeds, Sheffield. The hotels have performed “particularly well”, in line with a strong performance seen at hotels opened last year in Birmingham and Manchester.
Parsons added: "Whilst we are mindful of the current economic uncertainty facing the UK, our simple, stylish and highly affordable customer proposition resonates well with today's cost-conscious traveller and has underpinned strong RevPar growth over the period.