TIDMEZH
RNS Number : 8253V
easyHotel PLC
11 April 2019
11 April 2019
easyHotel plc
easyHotel plc
("easyHotel", "the Group" or "the Company")
Trading Update and Pre-Close Statement
Fourth year of market outperformance for owned hotels
easyHotel, the owner, developer and operator of super budget
branded hotels, today issues the following trading update for the
six months ended 31 March 2019 ("the period").
Trading Overview
Despite the ongoing political and economic uncertainty facing
the UK, the Group continued to outperform its hotel markets in the
UK and across Europe during the period.
-- Total system sales up 24% to GBP19.9m (31 March 2018: GBP16.1m)
-- Revenue up 47% to GBP7.0m (31 March 2018: GBP4.8m)
-- Owned hotels like-for-like RevPar up 5.4%
-- Franchise like-for-like RevPar down 3.5%
Both the Group's owned and franchised hotels significantly
outperformed the market in the UK. Looking across the wider hotel
market, falling consumer confidence has dampened total hotel
demand, with RevPar up 0.4% during the period (STR MSE UK).
Relatively strong market demand in London was off-set by a weaker
regional market performance, with a marked deterioration in RevPar
across the UK in Q2 as compared with Q1. As a result the short-term
market outlook remains uncertain.
The Group's European franchised hotels performed less strongly
than those in the UK, despite European hotel markets generally
outperforming the UK. Trading is mixed on a country-by-country
basis. As in the UK, overall market demand has softened in
2019.
Our hotel in Dubai is trading in-line with the wider market. The
imbalance between supply and demand continues to affect RevPar.
New Hotel Openings
Our new owned hotel in Ipswich and two further franchised hotels
in Lisbon and Bernkastel Kues have added 290 rooms to our network
during the period and are already trading in line with management's
expectations.
Owned Hotel Development
Further new owned hotel openings at Milton Keynes (124 bedrooms)
and our refurbished Old Street hotel (89 rooms) are well advanced.
Both hotels and the 15,500 sq. ft. of self-contained office space
at Old Street are expected to open this June, which will be earlier
than we had expected. Already there is encouraging interest in
leasing the offices.
The Group has continued to extend its pipeline during the
period. In the UK, the 145-bedroom easyHotel Bristol development
was added, subject to planning permission. Further to the
successful opening of the Group's flagship Continental European
hotel in Barcelona last summer, the establishment of the Group's
European development team has added a 209 room easyHotel at
Paris-Charles de Gaulle Airport to the development pipeline. A
planning decision is expected soon.
We have now received planning permission for the Group's hotels
in Oxford (180 bedrooms) and Blackpool (103 rooms), both of which
are expected to open in the 2020/21 financial year. Other new owned
hotel projects currently in development include Cardiff (120 rooms)
which will open next (financial) year and Cambridge (100 rooms),
Chester (109 rooms), and Dublin (130 rooms) which are anticipated
to open in the Group's 2020/2021 financial year.
Franchised Hotel Development
Franchised hotel openings for this financial year include Zurich
(150 rooms, across more than one hotel), Amsterdam Schiphol Airport
(154 rooms) with Malaga (146 rooms) and Bur Dubai (300 rooms)
expected to open in the next financial year.
Commenting, Guy Parsons, CEO of easyHotel plc, said:
"Ongoing political and economic uncertainty continues to impact
consumer confidence as demonstrated by weakening quarter-on-quarter
demand across the market, both in the UK and in Europe. However,
our actions to drive occupancy, including working closely with
on-line travel agents (OTAs) to increase brand awareness, has meant
that easyHotel has continued to outperform its competitors as
consumers seek out the best value for money.
"Subject to our continued overall market outperformance as we
enter our key trading period and whilst mindful of the ongoing
uncertainty, the Board expects the outturn for the current
financial year to be in line with its expectations.
"We remain focused on our strategic priorities and believe the
current economic uncertainties will present attractive investment
opportunities to continue to expand our development pipeline in our
target destinations, creating value for our shareholders and
underpinning the long-term growth of the brand."
Enquiries:
easyHotel plc
Guy Parsons, Chief Executive www.easyhotel.com
Officer
Gary Burton, Chief Financial http://ir.easyhotel.com
Officer
Investec (Nominated Adviser
and Broker) +44 (0) 20 7597 5970
David Anderson
Houston PR (Financial PR) +44 (0) 20 3701 7660
Kate Hoare / Laura Stewart
Notes to Editors:
www.easyhotel.com http://ir.easyhotel.com
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 eleven owned hotels currently comprise 1,219 rooms,
and it has a further 25 franchised hotels with 2,139 rooms.
Owned hotels:
United Kingdom: Old Street (London), Glasgow, Croydon,
Birmingham, Manchester, Liverpool, Newcastle*, Leeds, Sheffield and
Ipswich.
Spain: Barcelona
Franchise locations:
United Kingdom: Edinburgh, London Heathrow, Central London,
Luton, Reading and Belfast.
Europe: Belgium (Brussels), Bulgaria (Sofia), Germany (Berlin,
Frankfurt, Bernkastel-Kues), Hungary (Budapest), The Netherlands
(Amsterdam: City, Arena & Zaandam, Rotterdam, The Hague, The
Hague Scheveningen Beach, Maastricht), Portugal (Lisbon),
Switzerland (Basel, Zurich).
International: UAE (Dubai).
Hotel development pipeline
The Company's committed development pipeline of owned and
franchised hotels currently consists of:
Owned hotels:
United Kingdom: Milton Keynes, Chester, Cardiff, Oxford*,
Blackpool. Subject to planning consent: Cambridge* and Bristol.
Europe: Subject to planning consent: Ireland (Dublin), France
(Paris-Charles de Gaulle Airport*).
Franchise hotels:
Europe: Spain (Malaga), Switzerland (Zurich, Basel), Netherlands
(Amsterdam Schiphol Airport).
International: Iran, Sri Lanka, Turkey (Istanbul), UAE
(Dubai).
*Hotels under an operating lease.
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END
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