easyHotel has reported a 60% increase in revenue despite political and economic uncertainty hitting consumer confidence, in a trading update for the first quarter of the current financial year.
Total system sales were up 31% and owned hotels like-for-like revenue per available per room (revpar) increased by 11.2%.
Guy Parsons, CEO of easyHotel, said: “Whilst we are not immune from the ongoing political and economic challenges and their impact on the hotel sector, our robust business model means that we have continued to outperform our markets in the period.
“These current uncertainties are presenting us with opportunities, which might not otherwise be possible, to acquire sites on good terms in central locations in our core target cities, such as Dublin, Bristol and Paris Charles de Gaulle.
“Well publicised uncertainties and frequent regulatory delays can postpone completion of our hotels and how quickly they reach maturity. However, we are making good progress with our strategic priorities and are confident that the appeal of easyHotel’s super budget brand will deliver long-term growth.”
The super budget hotel group issued the update ahead of its AGM, which will be held today. It stated that the board believes the 2019 financial year will be more challenging than 2018 and has taken the decision to drive revenue growth and brand recognition at the expense of gross margin. This will see increased use of online travel agents (OTAs).
The period has seen the opening of a 89-bedroom hotel in Ipswich, Suffolk, and two franchised hotels in Lisbon, Portugal, and Bernkastel Kues, Germany.
New developments are planned in both the UK and mainland Europe, including a 124-bedroom hotel in Milton Keynes expected to open later this financial year and a 145-bedroom building in Bristol expected to open in 2020.
Other sites in development include Oxford, Cambridge, Chester, Cardiff, Dublin and Blackpool.