EasyHotel to float on stock market to fund expansion
EasyHotel is set to be listed on the stock market with a view to raising up to £60m to finance the expansion of the budget brand.
EasyHotel won't say how many properties it hopes to launch, but confirms it will involve "significant expansion" in major European gateway cities.
The group currently operates 20 hotels, including two wholly-owned freehold properties in Glasgow and London's Old Street, one long leasehold development site and 17 franchised hotels. Eight are in the UK (Edinburgh, Glasgow, Luton and five in London), with the rest across Europe, Dubai and South Africa.
Simon Champion, formerly managing director at Deutsche Bank who was brought on board as easyHotel's chief executive last year to grow the brand, said that he is now looking forward to "creating significant value" for the business.
Meanwhile, Sir Stelios, who will remain a significant minority shareholding in the company, said: "I see easyHotel as one of the best, most natural extensions of the easy brand from the airline. EasyHotel is raising money to accelerate growth at a much faster rate than I could have grown it as a private company, whilst enabling me top spend more time on by diversified portfolio of other investments."
EasyHotel, which regards itself as a "super budget" brand with limited competition across Europe, was established in 2004. Its UK room rates start at £25.
The strong "easy" brand and direct distribution costs enable the group to market its rooms at the lowest possible price point.
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