Budget hotel group Easyhotel has reported losses before tax of £3.5m for the financial year ended 30 September 2019.
The loss for the year was attributed to a £3m write-off in value of its Ipswitch hotel, which opened in January last year, alongside £1.4m in costs associated with the sale of shares.
Despite this, the hotel group reported a 42.1% growth in adjusted EBITDA to £4.2m.
Total system sales also increased to £47.6m compared with £37.3 in 2018. However, the adjusted EBITDA margin decreased to 27.7%, compared with 29.6% in 2018.
Scott Christie, interim chief executive officer, said: “Easyhotel has demonstrated the strength and resilience of its super-budget model, continuing to outperform a challenging market on a like-for-like basis over the course of the year.
“The group has made good progress against its strategy for growth, with six new owned and franchised hotel openings and the successful reopening of our flagship hotel in Old Street, London, following refurbishment.”
He added: “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.
“We are excited by the development pipeline and the potential for the brand in Europe. With strong supportive shareholders behind us, the significant investments we have made in the business will ensure we have the resources to continue to expand and enhance the business and deliver the board’s ambitious strategy for targeted growth.”