EasyHotel secures financing, will open eight new hotels
Staff Writer |
EasyHotel is trading in line with expectations as the market improved in the last two months of December, while the budget hotel operator plans to open further hotels during 2017.
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EasyHotel said for the year ended September 30 the company had made "good progress" and is in line with expectations for both its owned and franchised hotels, and remains on track to deliver its development strategy.
EasyHotel is investing in a new hotel management system, as part of its development strategy to improve efficiency and enable to maximise income. The integrated and automated system, provided by Hetras, will be rolled out to all owned and franchise hotels in the coming months.
CEO Guy Parsons, said the UK hotel market improved in November and December with revenue per available room growing in both months compared with 2015, while owned hotels have "continued to outperform the general market and their individual competitive set", as measured by STR Global, the industry benchmark.
"A similar market improvement has been experienced across much of continental Europe and its franchise hotels are performing in line with their respective markets.
He said: "We remain on track to open eight new hotels, four owned and four franchised, in the current financial year and continue to make good progress in adding new projects to our development pipeline.
"Trading is in line with our expectations and we remain focused on implementation of our strategy as we continue to extend our footprint and establish easyHotel as the leading super budget hotel chain."
New hotel projects are under construction across the UK with EasyHotel Birmingham due to open later this week, and hotels in Liverpool and Manchester opening in March and in Ipswich during the summer.
In December, the company conditionally bought long leasehold properties in Sheffield and Leeds, to be opened in 2018, and subject to obtaining planning permission.
Recently, planning permission was granted for a 204-room new hotel in Barcelona on Gran Via, on the main avenue of L'Hospitalet de Lllobregat, due to open in 2018.
A 15-year, €8.25m bank facility was secured in January to part-fund development of the project, and will be due in 2032 with interest at Euribor +2.25%.
In the later half of the 2016 calendar year the company has also opened two franchise hotels in Brussles and Amsterdam, adding a further 238 rooms to its network. ■