EasyHotel to sell Ipswich site

‘Super budget' hotel brand EasyHotel is to sell its Ipswich hotel.

The company bought the freehold of the building in January 2016 for £800,000 and is now selling a 999-year leasehold agreement for £140,000 for the A3 space at 3-5 Northgate Street.

The vacant space will be turned into a coffee shop.

The news came as the company said it had made "good progress" since the start of its financial year and that trading for the year ending 30 September 2017 was so far in line with its expectations.

The company has three owned hotels, in London, Glasgow and Croydon. It also has a further 19 franchised hotels with 1,643 rooms.

New hotels in Birmingham (84 rooms), Liverpool (79 rooms), Manchester (115 rooms) and Ipswich (94 rooms) are under construction. The Birmingham hotel will open later this week, Liverpool and Manchester in March 2017 and Ipswich in the summer.

The company also has planning permission for a 204-room hotel in Barcelona.

Guy Parsons, chief executive officer, said: "The UK hotel market improved in November and December with Revpar growing in both months compared with 2015. Our owned hotels have continued to outperform the general market and their individual competitive set, as measured by STR Global. A similar market improvement has been experienced across much of continental Europe and our franchise hotels are performing in line with their respective markets.

"We remain on track to open eight new hotels, four owned and four franchised, in the current financial year and continue to make good progress in adding new projects to our development pipeline. Trading is in line with our expectations and we remain focused on implementation of our strategy as we continue to extend our footprint and establish easyHotel as the leading super-budget hotel chain."

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