EasyHotel reports revpar boost as affordable sector becomes ‘more attractive'
Budget hotel chain easyHotel has reported a 45% increase in revpar (revenue per available room) for the 15 months ended 31 December 2022.
Total revenue increased to £45.5m, with revenue from owned hotels more than quadrupling in value from £9.9m in 2021 to £41.7m in 2022.
Adjusted ebitda (earnings before interest, taxes, depreciation and amortization) grew to £12.5m from £1.3m in the year ended 30 September 2021, while loss before tax fell to £2.3m from £7m the previous year.
Meanwhile, total average occupancy for all owned hotels was at 74.8% compared to 2021, with an average daily rate (ADR) per room of £44.70 compared to £39.30.
Room count increased by 58% over the period, which brought the total number of sites to 42 hotels across 11 countries.
EasyHotel stated it currently has 620 rooms in the development pipeline for owned and leased hotels following a £52.4m investment in new assets and acquisitions. It also revealed aims to double its portfolio by 2027.
"We remain confident on the development pipeline and the potential for the brand in Continental Europe. Moreover, we have supportive shareholders who share this vision for the group, as we look to accelerate our development, funded in the longer term through a combination of new debt secured on the group's assets and further equity," the hotel group added.
Karim Malak, chief executive at easyHotel, said: "The H1 2023 trading results reflect the brand's dedication to offering high-quality, budget-friendly, and low carbon accommodations, as well as our readiness to adapt to changing market dynamics.
"The market fundamentals are positive for the affordable sector. We are finding that our customer is changing, and our offering is becoming more attractive to a wider audience. We offer central locations and brilliant basics, without compromising quality, enabling the customer to experience the city and local community."
