EasyHotel considers finance options to fund more properties

EasyHotel is weighing up new finance options as more development opportunities emerge.

The disclosure emerged as the super-budget chain revealed plans for a 124-room property in Milton Keynes due to open by summer 2019 at a cost of £8.7 million.

The Milton Keynes development completes the deployment of funds from a 2016 equity fundraising and bank loan, according to chief executive Guy Parsons.

He said: “We continue to see a good number of attractive potential development opportunities, both in the UK and Europe to further accelerate the group’s growth.

“These are both larger and more numerous than we had originally anticipated.

“Consequently, the board is considering its finance options, which may include new equity and debt, to fund more hotels.”

The company has a committed pipeline of seven owned hotels, with 941 rooms.

Construction of hotels in Barcelona, Leeds, Sheffield and Ipswich has started and the 517 rooms will all open this summer.

The planned hotel openings during the financial year ending September 30 and beyond are expected to make a significant contribution to system sales, revenue and adjusted earnings [EBITDA] in the future, the company said.

Parsons described expansion into Milton Keynes as part of its strategy of offering “comfortable, affordable accommodation in key tourist and business locations in the UK and internationally”.

The group opened a hotel in Newcastle in December on time and on budget, bringing its portfolio up to seven owned hotels with 702 rooms, plus 19 franchised hotels with 1,641 rooms.