EasyHotel has announced a significant expansion plan, aiming to develop 120 new properties within four years, backed by an enhanced £42.5 million loan from Santander. This strategic growth is driven by robust demand and will encompass both owned and franchised developments across the UK and continental Europe.
- The budget hotel chain is targeting both the UK and continental Europe, capitalising on strong demand and a robust pipeline for future developments.
- A new £42.5 million bank loan from Santander replaces a previous arrangement, with a £7.5 million increase earmarked for low-carbon investments.
- In France, EasyHotel has secured an additional £6 million loan from BRED Banque Populaire, with plans to open a new 110-bedroom hotel in Marseille.
- The company reported a 35% increase in owned and leased hotel revenue, surpassing €100 million from franchised hotels for the first time.
EasyHotel is poised for an ambitious expansion as it sets its sights on adding 120 hotels over the next four years, facilitated by a newly secured £42.5 million loan from Santander. This move is not only a response to heightened demand but also a strategic effort to solidify its footprint across the UK and continental Europe. The loan agreement replaces a prior arrangement and features a notable £7.5 million increase, specifically allocated for low-carbon initiatives such as the installation of heat pumps and smart meters, alongside a comprehensive refurbishment of their Glasgow property.
In addition to its UK efforts, EasyHotel is intensifying its presence in France, with a supplementary £6 million loan from BRED Banque Populaire. This funding will support the opening of a new 110-bedroom hotel in Marseille, joining existing establishments in Paris Charles de Gaulle Villepinte, Paris Nord Aubervilliers, and Nice Palais de Congrès. The development of these new properties underscores EasyHotel’s commitment to sustainability and meeting contemporary demands, aligning with broader trends in the hospitality industry.
The group’s financial performance has been robust, with owned and leased hotel revenue in 2023 showing a significant 35% increase compared to the previous year. This growth trajectory is further bolstered by franchised hotels contributing over €100 million in total revenue for the first time. Such financial success is attributed to recent openings in Paris and Dublin, which have outpaced budget forecasts. Two-thirds of the company’s sales now emanate from continental Europe, reflecting its effective expansion strategy into these markets.
Looking ahead, EasyHotel plans to continue its growth momentum with the upcoming opening of its fourth hotel in Zurich later this year. Moreover, additional refinancing agreements are anticipated as the company focuses on its ongoing projects in Barcelona Meridiana, Alicante, and Valencia. Chief Financial Officer Charles Persello highlighted the record revenue achievements and emphasised the brand’s focus on delivering value through its recognised easy brand.
Paul O’Reilly, Relationship Director at Santander UK, expressed enthusiasm for supporting EasyHotel’s growth trajectory, praising the hotel group’s strategy and envisaging a thriving relationship as they expand both domestically and internationally.
With strategic loans and robust growth, EasyHotel is well-positioned to enhance its European presence significantly.
