easyHotel PLC easyHotel secures lease for Oxford hotel (6580I)
June 21 2017 - 1:00AM
UK Regulatory
TIDMEZH
RNS Number : 6580I
easyHotel PLC
21 June 2017
21 June 17
easyHotel plc
easyHotel plc
("easyHotel", "the Group" or "the Company")
easyHotel secures lease for purpose-built 180-room "super
budget" hotel in Oxford
easyHotel, the owner, developer and operator of "super budget"
branded hotels, announces that it has signed a 25 year lease on a
site in the city of Oxford, for the development of a new
purpose-built easyHotel. The agreement is subject to obtaining
planning permission.
Located in Oxford's Summertown, a premium residential and
shopping district less than two miles from Oxford city centre, and
only half a mile from Oxford's Ring Road, the site is to be
redeveloped as a mixed use property. A new purpose-built 180-room
easyHotel will occupy the first and second floors of the property
and is expected to open in the second half of the 2019 calendar
year.
Oxford is a key economic centre in the UK and a popular tourist
destination where demand for hotel accommodation is consistently
strong. High land costs and the lack of suitable, available sites
have made Oxford a very difficult city within which to develop
hotels in general, and budget hotels in particular, with only 200
new hotel rooms having opened in the city in the last five
years.
Oxford will be the Group's first leased site. The hotel will be
let on a 25 year FRI (fully repairing and insuring) lease at an
annual rent of approximately GBP1.2m. The hotel will be developed
by 4Urban Consulting Ltd through their investment vehicle GHSR LLP,
in accordance with easyHotel's specifications. 4Urban are backed by
the Bramall family.
As previously announced on 23 May 2017, the Board will only
consider leased sites on a limited and specific basis for strategic
locations where the acquisition of freehold or long leasehold
interests do not meet the Board's investment return targets. This
will enable the Company to increase the number of hotel rooms under
its direct control and grow its earnings at a lower capital cost
whilst, at the same time, maintaining a risk balanced approach to
covering the group's future lease obligations.
The Oxford site takes easyHotel's pipeline of owned development
projects to 781 rooms in addition to the 1,236 franchise rooms
currently under development.
Commenting, Guy Parsons, CEO of easyHotel plc said: "Oxford is a
premier business and tourist destination with over 7 million
visitors per year. The city has been on our target list for some
time and we are pleased to have agreed terms on this new hotel,
which will be the closest branded budget and super budget hotel to
the city centre. The Board looks forward to announcing further
opportunities for the easyHotel brand as we 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 five owned hotels currently comprise 590 rooms, and
it has a further 20 franchised hotels with 1,750 rooms.
Owned hotels:
Old Street (London), Glasgow, Croydon, Birmingham,
Manchester.
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 (Liverpool, Ipswich, Sheffield, Leeds), Spain
(Barcelona) Subject to planning consent: United Kingdom
(Oxford).
Franchise hotels:
UAE (Dubai), Germany (Bernkastel-Kues), Portugal (Lisbon),
Turkey (Istanbul), Nepal (Kathmandu), UK (Belfast, Reading).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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