TIDMEZH
RNS Number : 5040W
easyHotel PLC
15 November 2017
15(th) November 2017
easyHotel plc
easyHotel plc
("easyHotel", "the Group" or "the Company")
easyHotel takes over Tune hotel in Newcastle
easyHotel, the owner, developer and operator of "super budget"
branded hotels, announces that it has agreed to take over the 104
room Tune hotel in Newcastle, UK.
The hotel at Proctor House, 23-29 Side, Newcastle, is centrally
located between the City Centre and The Quayside, and an 8-minute
walk from Newcastle Central Station. The property, which opened as
a hotel in 2014, is in excellent condition and will open as an
easyHotel next month following minor rebranding works to the
building.
Newcastle is the largest City in the North East, famous for its
bar and nightlife scene, attracting 2 million visitors per year.
The City is home to a number of businesses and leisure attractions,
including The Baltic Centre, The Great Northern Museum, The Metro
shopping centre and Newcastle United Football Club.
Newcastle will be the Group's second leased site. The hotel will
be let on a 25-year FRI (fully repairing and insuring) lease at an
annual rent of GBP442,000.
As previously outlined, whilst the Board is focused on
accelerating the Group's expansion through owned and franchise
hotel development, it will consider specific leased sites,
providing they enable the Group to build a footprint in strategic
gateway locations. The Board applies strict due diligence when
assessing lease opportunities, stress testing a minimum risk
adjusted rent cover in line with hotel sector standards.
This selective approach to leased opportunities will enable the
Company to increase the number of hotel rooms under its direct
control, grow its earnings at a lower capital cost and maintain the
Group's (blended) ROCE target of 15%.
Commenting, Guy Parsons, CEO of easyHotel plc, said:
"This is an excellent opportunity to establish a footprint in
the vibrant and popular City of Newcastle. The 104 rooms will
require minimal work to bring them in line with our brand and we
will open the new easyHotel Newcastle next month.
"It has been a year of accelerated growth for the Group,
validating our strategy of offering comfortable, affordable
accommodation in key tourist and business locations in the UK and
internationally. The Board looks forward to announcing further
opportunities for the easyHotel brand as we continue to expand our
development pipeline."
Enquiries:
easyHotel plc
Guy Parsons, Chief Executive www.easyhotel.com
Officer
Marc Vieilledent, Chief http://ir.easyhotel.com
Financial Officer
Investec (Nominated Adviser
and Broker) +44 (0) 20 7597 5970
David Anderson
Houston PR (Financial
PR) +44 (0) 20 3701 7660
Kate Hoare
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 six owned hotels currently comprise 598 rooms, and
it has a further 20 franchised hotels with 1,750 rooms.
Owned hotels:
Old Street (London), Glasgow, Croydon, Birmingham, Manchester,
Liverpool.
Franchise locations:
Belgium (Brussels), Bulgaria (Sofia), Germany (Berlin,
Frankfurt), Hungary (Budapest), The Netherlands (Amsterdam: City,
Arena & 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 (Ipswich, Sheffield, Leeds), Spain (Barcelona)
Subject to planning consent: United Kingdom (Cardiff and Oxford -
lease).
Franchise hotels:
UAE (Dubai), Germany (Bernkastel-Kues), Portugal (Lisbon),
Turkey (Istanbul), UK (Belfast, Reading), Iran, Sri Lanka.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCFMMMMNDLGNZM
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November 15, 2017 02:00 ET (07:00 GMT)
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