Super budget branded hotel group EasyHotel has reported strong financial results for the first half of the year.
According to the group’s interim results for the six months ended 31 March 2018, “strong market outperformance” drove “sustained growth”.
The group saw profit before tax of £90,000, a 52.5% increase on the same period last year, and revenue of £4.76m, up from £3.14m. It also reported adjusted earnings before interest, tax, depreciation and amortisation of £980,000, up 51%.
The group raised £50m through a share pacing earlier this year to speed up the expansion of owned hotels, which it says is already fuelling expansion.
New openings are expected to increase the group’s room portfolio by 38% by the end of the calendar year, with three new hotels having opened in the first half of the year, and four new owned hotels and five franchised hotels scheduled to open this year.
Guy Parsons, chief executive of EasyHotel, said: “EasyHotel delivered another strong performance in the first half of our financial year, growing market share in every market in which it operates. The group’s successful £50m fundraising is already fuelling further expansion and since the placing completed in March 2018 we have been delighted to announce further additions to our development pipeline with new sites acquired in Cambridge and Chester.
“As has been widely reported, industry data points to more challenging trading conditions in the overall UK hotel market whilst the European market continues to perform well. Our growing portfolio of European hotels are trading strongly.
“Whilst we remain mindful of UK consumer sentiment we believe our super budget offer is appropriately aligned to the needs of discerning and value conscious customers. Group trading remains in line with our expectations and we expect the brand to continue to outperform the market.”
The group says it believes there is potential for approximately 12,000 owned EasyHotel rooms primarily in the UK, Spain, France and Germany. It currently owns seven hotels comprising 702 rooms.