TIDMEZH
RNS Number : 7850U
easyHotel PLC
23 January 2017
23 January 2017
easyHotel plc
("easyHotel" or "the Group")
Trading Update and
Disposal of asset in Ipswich
easyHotel, the owner, developer, operator and franchisor of
"super budget" branded hotels, announces a trading update for the
financial year to date in advance of its Annual General Meeting to
be held today.
Since the start of the current financial year the Group has
continued to make good progress and trading for the year ending 30
September 2017 is in line with the Board's expectations in both its
owned and franchised hotels. Furthermore, the Group remains on
track to deliver its development strategy announced in September
2016.
Disposal of asset in Ipswich
The Group announces an agreement to dispose of the A3 space at
3-5 Northgate Street in Ipswich under a 999-year leasehold
agreement for a consideration of GBP0.14 million. The space, which
is vacant, comprises a part of the ground floor (kiosk) of the
building which will be converted into a coffee shop. easyHotel
acquired the freehold of the building in January 2016 for GBP0.8
million.
Owned hotel development pipeline
-- New hotel projects under construction in Birmingham
(84-room), Liverpool (79-rooms), Manchester (115-rooms) and Ipswich
(94 rooms) are progressing well. easyHotel Birmingham will open
later this week, Liverpool and Manchester in March 2017 and Ipswich
during Summer 2017.
-- In Spain, planning permission was granted for the 204-room
new build easyHotel Barcelona hotel located on Gran Via, on the
main avenue of L'Hospitalet de Lllobregat. Acquisition of the land
was completed in November 2016 and an EUR8.25m facility was secured
in January 2017 to part-fund development of the project. This 15
year bank facility due 2032 bears interest at Euribor +2.25%. The
hotel is expected to open in 2018.
-- In the United Kingdom, the development pipeline has been
extended with long leasehold properties conditionally acquired in
Sheffield and Leeds in December 2016 for conversion into 131-room
and 94-room hotels, respectively. The purchase of both properties
is subject to obtaining planning permission and the hotels are
expected to open in 2018.
Franchised hotel development pipeline
-- During the period two franchise hotels were opened, adding a
further 238 rooms to the easyHotel network. easyHotel Brussels
opened in October 2016 and easyHotel Amsterdam Arena Boulevard in
November 2016. Both hotels have traded very strongly since
opening.
-- In addition, two further franchise hotel projects have been
announced during the period. A 54-room hotel in Reading was
announced in November 2016 and an 81-room hotel in Belfast, the
first in Northern Ireland, was announced in January 2017. Both
hotels are expected to open in the next financial year.
easyHotel's total committed development projects currently have
1,833 rooms under development, 801 of which are owned and 1,032 are
being developed by franchise partners.
Ongoing professionalisation of the business
As part of the ongoing professionalisation of the business and
as previously announced, the Group is investing in a new Hotel
Management System. This fully integrated and automated system,
provided by Hetras, will improve efficiency and enable the Group to
further leverage its revenue management and dynamic pricing
strategy, to maximise income. The system will be rolled out to all
owned and franchise hotels in the coming months.
Guy Parsons, Chief Executive Officer, commented:
"The UK hotel market improved in November and December with
Revpar growing in both months compared with 2015. Our owned hotels
have continued to outperform the general market and their
individual competitive set, as measured by STR Global. A similar
market improvement has been experienced across much of continental
Europe and our franchise hotels are performing in line with their
respective markets.
"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."
Enquiries:
easyHotel plc www.easyhotel.com
Guy Parsons, Chief Executive
Officer
Marc Vieilledent, Chief http://ir.easyhotel.com
Financial Officer
Investec (Nominated
Adviser and Broker) +44 (0) 20 7597 4000
David Anderson / Chris
Treneman
Hudson Sandler (Financial
PR) +44 (0) 20 7796 4133
Wendy Baker/ Emily Dillon
Notes to Editors:
easyHotel is the owner, developer, operator and franchisor of
branded hotels. Its strategy is to target the "super budget"
segment of the hotel industry by marketing "clean, comfortable and
safe" hotel rooms to its customers.
Operating hotels
easyHotel's three owned hotels currently comprise 390 rooms, and
it has a further 19 franchised hotels with 1,643 rooms.
Owned hotels:
Old Street (London), Glasgow, Croydon.
Franchise locations:
Belgium (Brussels), Bulgaria (Sofia), Germany (Berlin,
Frankfurt), Hungary (Budapest), The Netherlands (Amsterdam,
Rotterdam, The Hague), Switzerland (Basel, Zurich), UAE (Dubai),
United Kingdom (Edinburgh, London Heathrow, Central London,
Luton).
Hotel development pipeline
The Company's committed development pipeline of owned and
franchised hotels currently consists of:
Owned hotels:
United Kingdom (Liverpool, Manchester, Birmingham, Ipswich),
Spain (Barcelona)
Subject to planning consent: United Kingdom (Sheffield,
Leeds)
Franchise hotels:
UAE (Dubai), Germany (Bernkastel-Kues), Portugal (Lisbon),
Turkey (Istanbul), The Netherlands (Amsterdam-Zaandam), United
Kingdom (Belfast, Reading)
Website: www.easyHotel.com
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
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