Budget hotel brand Easyhotel has reported a 24% increase in total system sales to £19.9m for the six months ending 31 March 2019.
Revenue increased by 47% to £7m during the period, compared with £4.8m the previous year, and owned hotels like-for-like RevPAR was up 5.4%. However, franchise like-for-like RevPAR decreased by 3.5%.
The group said that “despite the ongoing political and economic uncertainty facing the UK”, it continued to “outperform” its hotel markets in the UK and across Europe during the period.
However, looking across the wider hotel market, falling consumer confidence “dampened” total hotel demand, with RevPAR up 0.4% during the period. Market demand in London was off-set by a weaker regional market performance, with a marked deterioration in RevPAR across the UK in Q2 as compared with Q1.
Additionally, the group’s European franchised hotels performed less strongly than those in the UK, despite European hotel markets generally outperforming the UK
CEO Guy Parsons said: “Ongoing political and economic uncertainty continues to impact consumer confidence as demonstrated by weakening quarter-on-quarter demand across the market, both in the UK and in Europe.
“However, our actions to drive occupancy, including working closely with on-line travel agents (OTAs) to increase brand awareness, has meant that easyHotel has continued to outperform its competitors as consumers seek out the best value for money.”
He added: “Subject to our continued overall market outperformance as we enter our key trading period and whilst mindful of the ongoing uncertainty, the Board expects the outturn for the current financial year to be in line with its expectations.
“We remain focused on our strategic priorities and believe the current economic uncertainties will present attractive investment opportunities to continue to expand our development pipeline in our target destinations, creating value for our shareholders and underpinning the long-term growth of the brand.”