EasyHotel is raising £50 million through a share pacing to speed up the expansion of owned hotels.

The self-styled super-budget chain has a targeted pipeline of 1,122 rooms across the UK and Europe in popular city centre destinations.

This would build on an established portfolio of 2,343 rooms across 26 hotels.

A further 2,739 owned and franchised rooms are already committed to and funded and seven of these owned hotels are due to open in the next two years, according to the company.

The planned new hotels are expected to make a “significant contribution” to sales, revenue and adjusted earnings going forward.

Trading for the year ending September 30, 2018 is in line with expectations, the company added.

“The group has made excellent progress in line with its strategy to speed up owned hotel development and accelerate the roll-out of franchise hotels to drive returns on investment,” CEO Guy Parsons said.

“The strong and ongoing market outperformance of our growing owned hotel portfolio has continued into the current financial year with revpar [revenue per available room] up 10.9% against their competitive set.

“The proceeds from today’s placing will enable us to continue the acceleration of our owned hotel development pipeline, allowing us to take advantage of the significant opportunities within our markets, delivering enhanced returns for our shareholders and underpinning the long-term growth of the easyHotel brand.”