easyHotel, the super budget hotel group, are seeking a huge cash injection as they look to extend their portfolio of stripped-back hotels.
The hotel will grow the brand through a conditional placing of 45,454,546 shares, valued at 110.0 pence per share. The end goal for the group is to raise £50 million to fuel further growth.
“Excellent progress…”
easyHotel aim to acquire a further 1,122 rooms across the UK and in Europe with this funding, and will target hubs of business and leisure travel.
The group already run 26 hotels, with a cumulative 2,343 rooms across the portfolio, with seven more hotels already pegged to open over the next two years.
Those seven are just the start. Asides from this new push for cash, a further 2,739 further hotels are already funded by the brand to roll out in the coming years.
“Underpinning the long-term growth of the easyHotel brand”
Guy Parsons, Chief Executive Officer of Investor who is acting as nominated adviser explained: “The Group has made excellent progress in line with its strategy to speed up owned hotel development and accelerate the roll-out of franchise hotels to drive returns on investment.”
“The strong and ongoing market outperformance of our growing owned hotel portfolio has continued into the current financial year with RevPAR up 10.9% against their competitive set as measured by STR”.
“The proceeds from today’s placing will enable us to continue the acceleration of our owned hotel development pipeline, allowing us to take advantage of the significant opportunities within our markets, delivering enhanced returns for our shareholders and underpinning the long-term growth of the easyHotel brand”.
Find out more about the easyHotel group online
