easyHotel PLC Planning permission update for Old Street Hotel (9494A)
30 Marzo 2017 - 8:01AM
UK Regulatory
TIDMEZH
RNS Number : 9494A
easyHotel PLC
30 March 2017
30th March 2017
easyHotel plc
("easyHotel")
Planning permission update for Old Street Hotel, London
easyHotel announces that its appeal against Islington Borough
Council's refusal of retrospective planning permission relating to
78 of the 162 rooms at its Old Street Hotel (80 Old Street, London)
has been unsuccessful.
This retrospective planning application was identified (and
communicated) as a potential risk at the time of the Initial Public
Offering (IPO) in June 2014 and was inherited by the current
management team in 2015. This retrospective planning application
relating to the additional 78 bedrooms was rejected by Islington
Council in June 2016 and, since then, the Board has worked closely
with Islington Borough Council to come to a beneficial solution for
both parties, but has been unsuccessful as the Planning
Inspectorate has upheld the Council's policy to protect office
space in the borough.
The property was originally acquired by easyHotel prior to IPO,
in June 2012, for GBP10 million as a 92 bedroom hotel. In March
2014 the hotel was extended to 162 bedrooms, without planning
permission. The net book value of the property is GBP13 million and
the Board is confident that the current realisable value of the
building is significantly in excess of this.
In light of this outcome, easyHotel is now considering its
options, including a sale or partial sale of the building to
release capital to fund future higher yielding development
projects. The Board is confident a full sale of the building should
fund the development of at least 500 new rooms in the UK. A partial
sale, which would entail the concentration of the hotel operations
on the ground, first and second floors, with a sale of the upper
floors, would finance the development of a further 170 rooms in the
UK. Each option, if pursued, is likely to result in a short term
adverse impact to earnings in the current financial year and during
the period whilst the capital released is deployed in higher
yielding assets.
Enquiries:
easyHotel plc www.easyhotel.com
Guy Parsons, Chief Executive
Officer
Marc Vieilledent, Chief http://ir.easyhotel.com
Financial Officer
Investec (Nominated
Adviser and Broker) +44 (0) 20 7597 4000
David Anderson
Hudson Sandler (Financial
PR) +44 (0) 20 7796 4133
Wendy Baker/ Emily Dillon
Notes to Editors:
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 four owned hotels currently comprise 476 rooms, and
it has a further 19 franchised hotels with 1,643 rooms.
Owned hotels:
Old Street (London), Glasgow, Croydon, Birmingham
Franchise locations:
Belgium (Brussels), Bulgaria (Sofia), Germany (Berlin,
Frankfurt), Hungary (Budapest), The Netherlands (Amsterdam,
Amsterdam-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 (Liverpool, Manchester, Ipswich, Sheffield),
Spain (Barcelona)
Subject to planning consent: United Kingdom (Leeds)
Franchise hotels:
UAE (Dubai), Germany (Bernkastel-Kues), Portugal (Lisbon),
Turkey (Istanbul), UK (Belfast, Reading)
Website: www.easyHotel.com
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
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