EasyHotel achieves 8% like-for-like revenue growth
‘Super-budget' brand EasyHotel has announced like-for-like revenue growth of 8%, while pre-tax profit has slipped from £370,000 to £140,000, in its interim half year results.
Total revenue in the six months to 31 March 2016, was up 11.6% to £2.59m, while earnings before interest, taxation, depreciation and amortisation, adjusted for costs relating to hotel pre-openings and restructuring of the business, were up 10.9% to £580,000.
Guy Parsons, chief executive of EasyHotel, said that trading in the first half of the year had been slightly ahead of the board's expectations as the company's owned hotels started to benefit from a new revenue management strategy.
"This momentum has continued into the beginning of the second half, traditionally the busiest trading months of the year for hoteliers, and full year trading is on track to meet the board's expectations."
Highlights of the six month period included the investment of £4.59m in five new owned hotel projects, the start of building work on two new hotels in Liverpool and Manchester and the granting of planning permission for a 84-bedroom property in Birmingham.
Planning permission was also submitted for new hotels in Ipswich and Barcelona and construction began on three franchised hotels in Brussels, Amsterdam and Bur Dubai.
EasyHotel's current portfolio comprises three owned hotels with 390 rooms and 18 franchised hotels with 1,490 rooms. Its development pipeline includes eight hotels, of which five are owned and three are franchised.
The group believes there is the long-term potential for over 12,000 owned rooms, of which 8,000 would be in the UK and 4,000 in key gateway European cities.
Meanwhile, the franchised portfolio could expand to more than 15,000 rooms, of which 4,000 would be in the UK and 11,000 in Europe and the Middle East.
Super-budget' EasyHotel claims to outperform competitors in Q2 >>EasyHotel to expand beyond UK with Barcelona hotel >>Guy Parsons plots accelerated easyHotel expansion >>
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