Strong performance for easyHotel
The company achieved a 14 per cent rise in system sales, from £15.2m last year to £17.3m in 2014, and a 15 per cent increase in profit before tax from segment operations (£2m this year).
However, overall profit from operations stagnated at £1.3m, excluding off costs and share-based payments.
Chief executive Simon Champion said: "The group has made good progress during the year with strong performance from our owned hotels and across our franchised hotels. Current trading is healthy and we remain confident on the outlook for 2015, particularly given our recent refurbishment investment at Old Street and other initiatives that are underway.
“easyHotel is a strong brand with international recognition. Our expansion plans are taking shape and we are confident that we can secure owned properties for conversion in key European gateway cities, as well as expand the franchised estate. Our focus remains on delivering a high return on capital for shareholders, as well as providing excellent value for our customers".
New financing
easyHotel was listed on the London stock Exchange’s Alternative Investment Market (AIM) last June, raising £24m of capital to invest in the development of its hotels, bringing its net assets to £32.8m (£3.4m in 2013), including cash of £24.3m (£0.9m last year).
It also arranged a three-year Natwest loan facility of £8.7m in December 2013, £7.2m of which had been drawn by 30 September 2014.
Expansion
The brand’s owned hotel rooms grew by 195 this year, to 287, thanks to expansion at Old Street and the opening of a second owned hotel in Glasgow in January.
Not included in the results is the recent opening of its third owned hotel, a 103-bedroom venue, in Croydon this past November.
This brings the company’s international portfolio to 20 hotels in 13 cities within nine countries.
Two more franchised hotels are scheduled to open in the first half of 2015, and easyHotel is ‘focused on securing properties which meet [its] strict return on capital criteria’.
“Our initial focus for investment, in the UK, is to complement our three existing owned hotels. There are a number of cities, including London, which have high room rates and a good mix of leisure and business customers, where we have started to identify existing buildings that can be developed into hotels,” said executive chairman Jan Åstrand.
