EasyHotel secures €50m to more than triple estate by 2026

Budget chain EasyHotel has received a €50m (£42.66m) commitment from shareholders Ivanhoé Cambridge and ICAMAP towards its growth, with plans to more than triple its estate in Europe by 2026.

EasyHotel 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.

The group opened two hotels over the past 18 months in Cardiff and Oxford and has begun work on five further sites, including one in Cambridge.

The company said it had been performing at above pre-Covid levels, with occupancy rates regularly exceeding 80% since August, and since October most properties were reaching around 10% growth on a like-for-like basis compared to the same period in 2019.

Karim Malak, chief executive 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."

He added: "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, while 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."

EasyHotel was founded in 2004 by EasyJet founder Sir Stelios HajiIoannou and is now 76% owned by ICAMAP Investments and Ivanhoé Cambridge.