EasyHotel saw its sales increase by 33.6% to £16.1m in the six months to 31 March 2018, reflecting its continued expansion and the impact of a new booking system.
The operator said it has continued to “significantly outperform the budget market” with revenue per available per room (revpar) up 11.2% in owned hotels and like-for-like revenue up 13.5% in franchised hotels.
As it revealed its latest financial results the super-budget chain announced the acquisition of a brownfield site in Chester, where it plans to develop a 109-bedroom hotel. It said the anticipated cost for acquisition and construction will be approximately £7m.
Guy Parsons, chief executive of EasyHotel, said: “EasyHotel has traded strongly over the first half of the financial year, outperforming the wider market in both our owned and franchised hotels.
“We are mindful that consumers in the UK will continue to be cautious, given the wider macro-economic and political uncertainty, but we believe our super-budget offer positions us well, as consumers become increasingly discerning and value conscious.
“We continue to make good progress with our growth strategy. The Chester transaction marks our second investment following the successful fundraising announced in February 2018, taking easyHotel’s pipeline of owned and leased development projects to 1,150 rooms, in addition to the 1,857 franchise rooms currently under development.
“The proceeds from our successful fundraising will enable us to accelerate our growth and take advantage of the significant opportunities within our markets, creating shareholder value and underpinning the long-term growth of the EasyHotel brand.”
The period to March 2018 saw the opening of an owned 78-bedroom hotel in Liverpool, a 104-bedroom leased hotel in Newcastle and a 87-bedroom franchised hotel in The Hague, the Netherlands, bringing the group to 27 hotels across 18 cities.
A £1.5m refurbishment of hotels in Croydon and Glasgow was also completed in March, and plans to add another floor to the company’s 92-bedroom hotel in Old Street, London, have been announced.
EasyHotel plans to open hotels in Cardiff, Milton Keynes, Cambridge and Chester in 2019, with properties in Leeds, Sheffield, Ipswich and Barcelona expected later this year.