easyHotel to raise £11m

easyHotel has announced plans to raise £11m to expands its owned hotel network “across centrally-located, high quality sites in major European cities”.

Last month the group said that it would focus on France and Spain as part of its “ambitious strategy” for growth.

The company is planning to place 11.6 million new shares at 95p per share with shareholder Citrus Holdco, which is owned by a consortium of ICAMAP Investments. The group purchased a majority stake easyHotel late last year.

Scott Christie, interim CEO, said: “Our recently-announced investment in Spain marks the latest step in our strategy to expand our owned hotel network across centrally located, high quality sites in major European cities. The croup continues to make good progress towards securing sites in its target destinations and we look forward to announcing further developments in due course.”

The company, which appointed François Bacchetta as CEO last month, said that it expected to outperform the sector in the coming year.

Like-for-like owned hotels revpar was up 4.6% for the year to 30 September, while like-for-like franchised hotels revpar was down 1.7%, but with an improved performance during the second half of the year after a first-half decline of 3.5%.

Six new owned and franchised hotels opened during the year, totalling 607 rooms. The first owned hotel development site was secured in Paris with a second site, easyHotel Nice, acquired and opened post financial year-end. The company said that it had 2,006 rooms are currently in the development pipeline, including an owned hotel investment pipeline of some £40m.

Christie said: “Looking to the year ahead, whilst the uncertain political and economic landscape will continue to impact consumer sentiment, we remain confident that the easyHotel brand will continue to outperform the sector as consumers seek out the best value for money.”

The company’s current estate comprises 40 hotels with 3,759 rooms, comprising 27 franchised hotels and 13 owned hotels.