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EasyHotel has received a €50m (£43m) commitment from shareholders Ivanhoé Cambridge and ICAMAP to help support its future growth strategy.
The international budget hotel chain currently has an estate of 42 hotels with 3,977 rooms, but said the latest funding, together with recently secured bank fundings, will be used to develop or acquire new sites in key European cities.
By 2026, the group aims to more than triple the size of its owned and leased estate which currently comprises 15 hotels, with a total of 1,723 rooms, in the UK, France and Spain.
The group noted that a focus on its budget model has enabled it to successfully navigate through the pandemic, even allowing for the opening of two hotels over the past 18 months in Cardiff and Oxford). In addition, the group launched the works of five new hotels in Paris Charles de Gaulle, Barcelona, Dublin, Paris Aubervilliers and Cambridge.
According to the group, it also delivered a strong operational performance following the gradual removal of lockdown restrictions across Europe earlier in the year. It is now performing at above pre-covid levels, with occupancy rates regularly exceeding 80% since August, and since October most properties are reaching around 10% growth on a like-for-like basis compared to the same period in 2019.
Karim Malak, CEO of EasyHotel, said: “We are delighted to receive this funding from our investors, a demonstration of their confidence in the future prospects of easyHotel. The investment strengthens our position to capitalise on the strong underlying structural drivers across our markets, allowing us to continue to build and develop our estate in key cities across Europe.
“Our industry is starting to see a recovery following the impact of the Covid-19 pandemic and the associated lockdowns. Trading at easyHotel has been particularly good in recent months and at times has been even stronger than pre-pandemic times. Our strategy has always been to open hotels in key city centre locations and offer comfortable rooms at an affordable price, with excellent wifi and bedding.”
She added: “Recently we have become more relevant than ever as consumers look for low-cost and lowcarbon options in areas near to tourist attractions and events, whilst tightened corporate travel budgets make easyHotel a practical and secure choice for business visitors seeking optimal value for money.”
Michael Neuman, vice president, Investments, Europe at Ivanhoé Cambridge, and EasyHotel board member, said: “Since 2019 and our first investment in EasyHotel, we are convinced that budget hotels are a key component of the lodging industry in Europe, both for business and leisure travellers seeking the best price/quality ratio.
“We are very pleased to once again support easyHotel’s growth, one of the best brands and platforms in this segment, with the ambition to develop sustainable hotels in major European cities.”
Harm Meijer, Chairman of EasyHotel, added: “We are very pleased with EasyHotel’s performance and how it has come through recent turbulent times. We are excited about the future, which will be about all about growth.”
