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EasyHotel outperforms UK hotel market in first half

By Iain Gilbert

Date: Thursday 11 Apr 2019

EasyHotel outperforms UK hotel market in first half

(Sharecast News) - Budget accommodations outfit EasyHotel continued to outperform the hotel market in the UK over the six months ending on 31 March despite the ongoing political and economic uncertainty.
Revenues shot up 47% year-on-year to £7m as both the group's owned and franchised hotels "significantly outperformed" the UK market.

However, management noted that falling consumer confidence had dampened total hotel demand, with revenue per available room up just 0.4%.

EasyHotel said relatively strong market demand in London had been offset by a weaker regional market performance, with a marked deterioration in revenue per available room seen across the UK in the second quarter and, as a result, the short-term market outlook remained "uncertain".

European franchised hotels performed less strongly than those in the UK, despite European hotel markets generally outperforming the UK.

Total system sales improved 24% to £19.9m

Chief executive Guy Parsons 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 online travel agents to increase brand awareness, has meant that easyHotel has continued to outperform its competitors as consumers seek out the best value for money.

"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."

As of 1030 BST, EasyHotel shares had advanced 3.76% to 69p.

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