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EasyHotel revenue powers ahead as new outlets start to deliver

Total sales including franchised hotels rose by a quarter to £37mln
easyHotel
Another 1,160 rooms are in the pipeline

EasyHotel PLC (LON:EZH) saw strong underlying growth in the year just ended as the benefits of a major expansion push started to show through.

Total sales including franchised hotels rose by a quarter to £37mln, while group revenue picked up by a third to £11.3mln.

READ: EasyHotel to open big hotel in Bristol as expansion drive continues

On an adjusted basis profits rose by 29% to £2.96mln though pre-tax profits only edged higher to £0.87mln due to a decision to shut the Old Street outlet while it is being refurbished.

A franchised hotel at Earls’ Court was also closed down.

The ongoing operations performed well with the key industry metric of revenue per room 11.4% higher at the owned hotels and by 12.1% at the franchises.

Over the year, nine owned-hotels were opened including a first in Europe in Barcelona. The total portfolio now comprises 34 hotels in 28 cities.

Easyhotel raised £50mln in March to fund its expansion.

The dividend for the year was maintained at 0.22p, down by a third though allowing for the additional shares in the placing the amount paid out was maintained.

Guy Parsons, chief executive, said: This has been a transformational year for the group.

“We have increased our portfolio of rooms by 42%, in 27 cities across the UK, Continental Europe and the Middle East, making excellent progress towards our target of being the market leader in "super budget" hotels.

"Despite the wider macroeconomic uncertainty that continues to impact consumer confidence, particularly in the UK, we have grown market share for the third consecutive year.”

 

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EasyHotel Timeline

Newswire
September 28 2016

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