Budget hotel group EasyHotel has reported a loss before tax of £3.57m despite recording like-for-like revpar growth at owned hotels of 4.6%.
The loss for the year to 30 September 2019 was largely down to a £3m write-down in the value of its Ipswich hotel, which opened in January 2019 along with costs of £1.4m associated with the sale of shares.
EasyHotel said that adjusted EBITDA grew to £4.2m on total sales of £47.6m, though EBITDA margin decreased to 27.7% due to increased use of online travel agents to drive revenue.
During the period the operator opened the Ipswich hotel which dragged down its profits along with a property in Milton Keynes and the reopened the its Old Street site after refurbishment to office space, which is now up for sale for £15m.
Scott Christie, who is interim chief executive officer after last year's departure of Guy Parsons, said: "EasyHotel has demonstrated the strength and resilience of its super-budget model, continuing to outperform a challenging market on a like-for-like basis over the course of the year. The Group has made good progress against its strategy for growth, with six new owned and franchised hotel openings and the successful reopening of our flagship hotel in Old Street, London, following refurbishment.
"Looking to the year ahead, whilst the uncertain political and economic landscape will continue to impact consumer sentiment, we remain confident that the EasyHotel brand will continue to outperform the sector as consumers seek out the best value for money.
"We are excited by the development pipeline and the potential for the brand in Europe. With strong supportive shareholders behind us, the significant investments we have made in the business will ensure we have the resources to continue to expand and enhance the business and deliver the board's ambitious strategy for targeted growth."