Budget hotel group easyHotel saw revenue double last year to £2.59 million as it reported “robust trading”.
However, pre-tax profits rose only marginally by 7% to £370,000 with adjusted earnings [EBITDA] up by 6% to £520,000 due to costs incurred through its IPO last summer which raised £30 million.
This morning’s results come ahead of the opening of a new hotel in Prague on Friday following a franchised property opening in January.
The group said it had “a number of ongoing discussions regarding new franchise contracts”.
Chief executive, Simon Champion, said: “EasyHotel has continued to perform well, with a doubling of revenue year-on-year driven primarily by an increase in the capacity of our owned hotel portfolio.
“Profit growth has been dampened this year because of the additional costs incurred by being a public company, as well as the group investing to meet significant development targets.
“Our expansion strategy is progressing well, with a new site acquired in Liverpool expected to open in spring 2016.
“In addition, there has been an ongoing commitment to marketing and enhancing our customer experience, with a new website launched in March 2015 and a focus on improved customer service.”
He added: “Trading for the year ending 30 September 2015 continues in line with the board’s expectations and we remain confident that we can secure properties in the UK and key European gateway cities and continue to expand our franchised hotels elsewhere, delivering a high return on investment for our shareholders.”
Executive chairman, Jan Astrand, who oversaw the company’s recent IPO, is to step down on July 1.
Non-executive director, Jonathan Lane, is to take the role of executive chairman from July 2. Lane is current chairman of Shaftesbury Group.
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