EasyHotel is poised for significant growth with plans to expand its portfolio by 120 new properties over four years, financed by substantial loans.
- Securing a £42.5 million loan from Santander, EasyHotel aims to broaden its reach in the UK and continental Europe.
- The expansion will focus on low-carbon initiatives, including refurbishments and installations of eco-friendly technology across various locations.
- Additional financial backing from BRED Banque Populaire will support new developments in France, notably a 110-bedroom hotel in Marseille.
- Record revenue performance in 2023 underpins this ambitious expansion strategy as EasyHotel strengthens its presence in Europe.
EasyHotel has announced its intention to significantly grow its footprint by adding 120 new properties over the next four years, supported by a strengthened £42.5 million loan agreement with Santander. This development signals the budget hotel chain’s response to robust demand and a strong pipeline for both owned and franchised properties across the UK and continental Europe.
The new funding arrangement represents an increase of £7.5 million from a previous loan, underscoring EasyHotel’s commitment to enhancing its property offerings with a focus on sustainability. Plans include low-carbon upgrades such as heat pump installations and smart meter deployments, with a complete refurbishment already underway at a Glasgow hotel. Similar eco-friendly renovations are planned for nine additional hotels in France, Belgium, Spain, and the Netherlands.
Further financial support from BRED Banque Populaire will aid the brand’s expansion in France, facilitating the construction of a 110-bedroom hotel in Marseille set to open in the autumn. This property will join the ranks of EasyHotel’s existing French locations in Paris Charles de Gaulle Villepinte, Paris Nord Aubervilliers, and Nice Palais de Congrès.
In 2023, EasyHotel experienced a record year, with revenues from owned and leased hotels rising by 35% compared to 2022. Notably, overall revenue, including earnings from franchised properties, exceeded €100 million for the first time. Recently opened hotels in Paris and Dublin have surpassed performance expectations, contributing to the substantial two-thirds of sales now generated from mainland Europe.
Additional expansion is on the horizon, with EasyHotel’s fourth establishment in Zurich set to open later this year. Moreover, refinancing discussions are underway in Spain, as new properties are under construction in Barcelona Meridiana, Alicante, and Valencia. Charles Persello, the group’s Chief Financial Officer, expressed enthusiasm, stating, “2023 was a record year for revenue at EasyHotel driven by our great value product and leading Easy brand awareness in travel.”
Commenting on the successful collaboration with Santander, Paul O’Reilly, relationship director at the bank, noted, “We are pleased to be supporting EasyHotel with this loan facility, enabling the business to expand both in the UK and overseas.” This partnership showcases confidence in EasyHotel’s strategy and its promising growth trajectory.
EasyHotel’s strategic expansion, supported by significant financial backing and record revenue growth, positions it well for future success in the European market.
