EasyHotel eyes 120 new properties over four years

Budget chain easyHotel has secured an increased £42.5 million loan from Santander to support expansion in the UK and continental Europe.

The company, with 42 properties, sees the potential to grow by 120 hotels over the next four years due to strong demand and a “robust pipeline” for owned and franchised developments.

The new loan will replace a previous agreement and includes a £7.5 million increase.

The funds will finance low-carbon investments in the UK such as the installation of heat pumps and smart meters as well as a full refurbishment of a hotel in Glasgow. 

Similar low-carbon works will be taking place across nine hotels in France, Belgium, Spain and the Netherlands.

The group has also agreed an additional £6 million loan from BRED Banque Populaire to expand in France, including financing for a new 110-bedroom hotel in Marseille, due to open in the autumn.

Marseille will be the fourth property in France, joining hotels in Paris Charles de Gaulle Villepinte, Paris Nord Aubervilliers and Nice Palais de Congrès.

The new refinancing agreements stem from the group’s growth and a successful trading year, with the brand’s owned and leased 2023 hotel revenue climbing by 35% compared to 2022.

Total revenue including franchised hotels surpassed €100 million for the first time. 

Recent openings in Paris and Dublin have outperformed budget and with continued expansion into mainland Europe, two-thirds of sales now come from continental Europe, according to the company.

As well as Marseille, easyHotel opens its fourth hotel in Zurich later this year. 

Further refinancing deals are expected to be announced for Spain soon as the group is currently building hotels in Barcelona Meridiana, Alicante and Valencia.

Chief financial officer Charles Persello said: “2023 was a record year for revenue at easyHotel driven by our great value product and leading easy brand awareness in travel.

“It has been a pleasure to work with Santander for the fourth time. Looking ahead, our development team are working across more new hotel deals than ever before as we step up our growth of low carbon and great value hotels across Europe over the coming years.”

Paul O’Reilly relationship director – hotels, at Santander UK, added: “We are pleased to be supporting easyHotel with this loan facility, enabling the business to expand both in the UK and overseas.

“We welcome the hotel group’s growth strategy and are looking forward to seeing our relationship with easyHotel thrive.”

Go to Source...