Easy Hotel reports impressive revenue growth of 34%
The year to 30 September 2018 saw the super budget hotel group’s total system sales increase from £29.7m to £37.3m, while revenue increased to £11.3m, compared to £8.4m the previous year.
Adjusted EBITDA was at £2.96m up from £2.3m the previous year with the group recording pre-tax profits of £870,000, an increase on 860,000 the previous year.
Profits had been hit by the loss of 70 rooms at easyHotel Old Street and the closure of a 109-bedroom franchise hotel in Earl’s Court.
Revpar among the group’s owned hotels was up 11.4% while like-for-like revenue at franchised hotels increased by 12.1%.
Nine new easyHotels opened during the year totalling 907 rooms, with seven sites in the UK and Ireland in the development pipeline.
Guy Parsons, CEO 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.
“Despite the wider macro-economic uncertainty that continues to impact consumer confidence, particularly in the UK, we have grown market share for the third consecutive year. The continued outperformance of our hotels reflects the growing strength of the easyHotel brand. Our simple, stylish but highly affordable offer resonates exceptionally well with today’s cost-conscious traveller, giving us confidence to continue developing owned hotels.
“The successful placing completed in March 2018 has allowed us to accelerate our growth plans further, in line with our strict investment criteria. We see a number of exciting opportunities for the brand, not only in the UK but increasingly in Europe where we have recently opened our first owned European hotel in Barcelona. 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.”
Article credit: The Caterer