EasyHotel's revenues rise by a third following expansion to Barcelona
By Duncan Ferris
Date: Thursday 06 Dec 2018
(Sharecast News) - EasyHotel reported that its full-year revenue increased by a third on Thursday after opening nine new hotels over the period.
For the year-ended 30 September, the hotel developer and operator's revenue grew by 34% to £11.3m when compared to the year before, though profit before tax increased by just 1% to £0.9m after refurbishment caused disruption at thecompany's Old Street Hotel and the closure of a franchise at Earl's Court.
Guy Parsons, chief executive of EasyHotel, 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."
With the help of £50m raised through a March placing, the period saw the AIM traded company open nine new owned-hotels, including a first non-franchise hotel in Continental Europe following the opening of a Barcelona hotel.
The company's total portfolio now comprises 34 hotels in 28 cities, spanning ten owned hotels in the UK and Europe and 24 franchises across the UK, Europe and the Middle East.
The company said it has "considerable headroom for further investment", with cash and cash equivalents of £41.4m at 30 September, up from £33.3m at the same point last year, and an extended loan facility.
"We have added a further 1,160 rooms to our development pipeline over the course of the year and invested behind our team to expand our presence in Europe, where we believe there is significant opportunity for the brand, particularly in Spain, France and Germany," said Parsons.
EasyHotel's shares were up 1.14% at 88.50p at 1119 GMT.
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