EasyHotel has secured €50 million commitment from current shareholders Ivanhoé Cambridge and ICAMAP to support the execution of its future growth strategy.
The company currently has an estate of 42 hotels with 3,977 rooms. The additional capital together with new bank fundings recently secured will be used to develop or acquire new assets in key European cities. By 2026, EasyHotel is aiming 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.
Since August occupancy rates regularly exceeding 80% across its portfolio and from October onwards most properties reached around 10% growth on a like-for-like basis compared to the same period in 2019.
What They Said
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.
“Recently we have become more relevant than ever as consumers look for low-cost and low-carbon 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.”