EasyHotel to raise £38m in shares for expansion

28 September 2016 by
EasyHotel to raise £38m in shares for expansion

Budget brand EasyHotel has announced plans to raise £38m through a share placement scheme to fund the company's owned hotel roll-out strategy.

In a statement released today (28 September) the firm revealed details of a conditional placing of up to 38 million new ordinary shares at a price of 100p per share.

It will raise £38m before expenses and approximately £36.7m after expenses.

The placing shares represent almost 61% of existing ordinary shares and the price represents a premium of approximately 18.3% to the closing mid-market price of 84.5p on 27 September.

Proceeds of the placing will be primarily used to fund owned hotel roll-out strategy.

Guy Parsons, chief executive, said: "Since IPO (initial public offering) EasyHotel has made significant progress in line with its strategy to speed up owned hotel development and accelerate the roll-out of franchise hotels to drive high EBITDA returns on investment.

"With more opportunities available than had been expected, and over 4,500 rooms committed or identified in the owned and franchise development pipeline, the proceeds of the placing will primarily be used to fund the continuation of our owned hotel roll-out to deliver enhanced financial returns, whilst consolidating EasyHotel's position as a leader in the super budget hotel market in Europe and the Middle East."

EasyHotel said an owned hotel pipeline of 2,437 rooms and a franchise pipeline of 2,075 rooms have either been committed of identified.

The placing is conditional on the passing of the resolutions which are to be proposed at a general meeting of the company to be held on 14 October.

EasyHotel's owned hotels currently comprise 390 rooms and it has a further 17 franchised hotels with 1,405 rooms.

Its owned hotels, which are already open, include Old Street in London, Glasgow and Croydon.

EasyHotel to expand beyond UK with Barcelona hotel >>

EasyHotel completes acquisition of Birmingham Hotel >>

EasyHotel acquires Birmingham hotel for £4.5m >>

Latest video from The Caterer

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs >>

TagsFinance and Hotels
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking