EasyHotel today instigated a £38 million fund raising initiative to support the expansion of owned hotels.

The company is placing 38 million shares at £1 per share in the fund-raising exercise.

The move follows the ‘super budget’ chain raising £30 million in an initial public offering two years ago.

The company’s owned hotels comprise 390 rooms in addition to 17 franchised hotels with 1,405 rooms.

It plans to open new owned hotels in Birmingham, Ipswich, Liverpool, Manchester and Barcelona plus franchise properties in Amstedam, Brussels, Dubai, Lisbon, Istanbul and Germany.   

Chief executive Guy Parson said today: “Since IPO easyHotel has made significant progress in line with its strategy to speed up owned hotel development and accelerate the roll-out of franchise hotels to drive high EBITDA returns on investment.

“With more opportunities available than had been expected, and over 4,500 rooms committed or identified in the owned and franchise development pipeline, the proceeds of the [share] placing will primarily be used to fund the continuation of our owned hotel roll-out to deliver enhanced financial returns, whilst consolidating easyHotel’s position as a leader in the super budget hotel market in Europe and the Middle East.”