Regulatory Story
Go to market news section View chart   Print
RNS
easyHotel PLC  -  EZH   

Acquisition of property in Milton Keynes

Released 07:00 26-Jan-2018

RNS Number : 9860C
easyHotel PLC
26 January 2018
 

 

 

26 January 2018

easyHotel plc

easyHotel plc

("easyHotel", "the Group" or "the Company")

 

Acquisition of property in Milton Keynes for new easyHotel

 

Committed owned hotel pipeline increased to 941 rooms

 

easyHotel Milton Keynes

easyHotel plc, the owner, developer and operator of super budget branded hotels, today announces that it has conditionally acquired a 125-year leasehold of part of Norfolk House on Silbury Boulevard, a central site in Milton Keynes. The development has already received planning permission and the acquisition will be completed subject to planning being finalised at the end of the judicial review period.

Norfolk House is centrally located in the town centre, just 200m from the main shopping centre and just 0.3 miles from The Hub Milton Keynes, a major leisure scheme. The Group intends to convert its part of the building into a 124-bedroom hotel, which is expected to open by mid-2019 at a total cost of approximately £8.7 million.

Milton Keynes is the largest of the "New Towns" built in the UK and celebrates its 50th anniversary this year. The town has been developed into a hub for businesses and has strong rail and motorway links as well as being in close proximity to Luton International Airport. Major leisure destinations nearby include Bletchley Park, Woburn Safari park, Gulliver's Theme Park, the Milton Keynes bowl and Snozone, the UK's first indoor ski centre.

Portfolio update - committed pipeline increased to 941 rooms

The Group opened its new hotel in Newcastle in December 2017 on time and on budget. Whilst the hotel has only been open for a few weeks the Board is pleased to see this hotel trading in line with the strong performance of the hotels opened during the last financial year.

Following the opening of its Newcastle hotel, the Group currently owns seven hotels comprising 702 rooms, and it has a further 19 franchised hotels with 1,641 rooms.

The Group has a committed pipeline of seven owned hotels comprising 941 rooms. Construction of hotels in Barcelona, Leeds, Sheffield and Ipswich has commenced and the 517 rooms should all open in the summer of 2018.

The planned hotel openings during the current financial year ending 30 September 2018 and beyond are expected to make a significant contribution to system sales, revenue and adjusted EBITDA going forward.

Commenting, Guy Parsons, CEO of easyHotel plc said:

"We are delighted to have secured this site in Milton Keynes. Now in its 50th year, the town is home to many international business, has the third highest business start-up rate of any UK city and boasts an impressive range of shopping and leisure facilities.

 

"This acquisition is part of our ongoing strategy of offering comfortable, affordable accommodation in key tourist and business locations in the UK and internationally, and this completes the deployment of funds from our 2016 equity fundraising and bank loan.

 

"We continue to see a good number of attractive potential development opportunities, both in the UK and Europe to further accelerate the Group's growth. These are both larger and more numerous than we had originally anticipated. Consequently, the Board is considering its finance options, which may include new equity and debt, to fund more hotels."

 

Enquiries:

easyHotel plc

 

Guy Parsons, Chief Executive Officer

www.easyhotel.com

Marc Vieilledent, Chief Financial Officer

http://ir.easyhotel.com

Investec (Nominated Adviser and Broker)

+44 (0) 20 7597 5970

David Anderson

 

Houston PR (Financial PR)

+44 (0) 20 3701 7660

Kate Hoare

 

 

Notes to Editors:

www.easyhotel.com http://ir.easyhotel.com

easyHotel is the owner, developer, operator and franchisor of branded hotels. Its strategy is to target the "super budget" segment of the hotel industry by marketing "clean, comfortable and safe" hotel rooms to its customers.

 

Operating hotels

easyHotel's seven owned hotels currently comprise 702 rooms, and it has a further 19 franchised hotels with 1,641 rooms.

Owned hotels:

Old Street (London), Glasgow, Croydon, Birmingham, Manchester, Liverpool, Newcastle*.

Franchise locations:

Belgium (Brussels), Bulgaria (Sofia), Germany (Berlin, Frankfurt), Hungary (Budapest), The Netherlands (Amsterdam: City, Arena & Zaandam, Rotterdam, The Hague), Switzerland (Basel, Zurich), UAE (Dubai), United Kingdom (Edinburgh, London Heathrow, Central London, Luton).

Hotel development pipeline

The Company's committed development pipeline of owned and franchised hotels currently consists of:

Owned hotels:

United Kingdom (Ipswich, Sheffield, Leeds), Spain (Barcelona) Subject to planning consent: United Kingdom (Cardiff, Milton Keynes and Oxford*).

Franchise hotels:

UAE (Dubai), Germany (Bernkastel-Kues), Portugal (Lisbon), Turkey (Istanbul), UK (Belfast, Reading), Iran, Sri Lanka, Netherlands (The Hague Scheveningen Beach, Maastricht).

*Hotels under an operating lease.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
ACQSELFAIFASEDF
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Acquisition of property in Milton Keynes - RNS