EasyHotel reports record revenue ‘despite a softening UK hotel market'
EasyHotel is planning to further expand its enterprise following an 8.7% increase in turnover to £6.02m.
For the year ending 30 September, total system sales rose to 6.8% to £21.32m, profit before tax was up 38.4% to £1.09m, and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) has risen by 6.5% to £1.55m.
Total system sales is the full amount that the customer pays for owned and franchised hotels.
Like-for-like revenue within owned hotels increased by 13%, which EasyHotel credited to new revenue management and dynamic pricing strategies implemented during the year.
EasyHotel's growth strategy will focus on the roll-out of owned hotels in the UK. In September 2016, EasyHotel announced plans to raise £38m through a share placement scheme in order to fund this strategy.
The brand is now developing 1,527 rooms across the UK, with five new hotel projects in Liverpool, Manchester, Birmingham, Ipswich and Spain adding 576 owned rooms by 2018, and a further 951 franchised rooms in the pipeline.
Chief executive officer of EasyHotel, Guy Parsons said: "Despite a softening UK hotel market, particularly in London, revenue grew on a like-for-like basis by 13% as a result of the new revenue management and dynamic pricing strategy implemented during the year. This, together with a decision to start selling a limited allocation of rooms via selected online travel agencies (OTAs) resulted in all three owned hotels significantly outperforming their competitive set (as measured by STR) from November 2015 onwards"
EasyHotel's three owned hotels in Old Street, London, Glasgow and Croydon, currently comprise 390 rooms. The group has a further 19 franchised hotels with 1,643 rooms, in Belgium, Bulgaria, Germany, Hungary, the Netherlands, Switzerland, Dubai, and the UK.
EasyHotel to raise £38m in shares for expansion >>
