RNS Number : 5487H
25 March 2020
25(th) March 2020
("easyHotel" or the "Group")
Update re COVID-19
easyHotel , the owner, developer, operator and franchisor of
"super budget" branded hotels, today announces a further update in
response to COVID-19.
The health and welfare of our staff and guests is our key
priority and we have been working closely with our colleagues
across both our owned and franchised hotels to assess the risks
that they and our customers have been facing from the impact of the
In line with government advice in their respective countries,
both the Group's Barcelona and Nice hotels have closed, and
following the announcement and requirement by the UK Government on
23 March 2020, the Board can confirm that all its owned hotels are
now closed until further notice.
The Board is taking a number of immediate actions to protect the
cash flows within the business. These include careful management of
central costs and the reduction of capital expenditure and all
non-essential operating costs as appropriate. Additionally, the
Board is also reviewing the latest guidance from the UK Government
regarding its support for UK businesses through the current crisis
and the Group anticipates that its cash flows will benefit from
some of these measures, including support to business rates and the
Job Retention Scheme.
It is too soon to estimate the full impact that these closures
and the previously announced deterioration of our forward booking
position will have on the Group's performance for the current
financial year ending 30 September 2020, however, trading is
expected to end the year substantially behind the Board's
We have a robust balance sheet backed by a significant freehold
and long leasehold estate. Additionally, the recently announced
equity fundraising of GBP11 million (gross) due to complete on
26(th) March 2020, when aggregated with its existing cash balances,
means that we currently have access to good levels of liquidity
We remain in constant and close dialogue with our financial
lenders and have amended our group committed facility to strengthen
our financial position.
The Board remains confident in the Group's strategy over the
longer term. It will continue to monitor the evolving situation
closely and will update the market as appropriate.
Scott Christie, Interim Chief www.easyhotel.com
Harm Meijer, Non-executive Chairman http://ir.easyhotel.com
Investec (Nominated Adviser
and Broker) +44 (0) 20 7597 5970
Houston (Financial PR) +44 (0) 20 3701 7660
Kate Hoare / Laura Stewart
Notes to Editors:
easyHotel is the owner, developer, operator and franchisor of
branded hotels. Founded in 2004 by Sir Stelios Haji-Ioannou,
easyHotel's strategy is to target the super budget segment of the
hotel industry by offering great value and "clean, comfortable and
safe" hotel rooms to its customers. Citrus Holdco, a company owned
by a consortium comprising Cadim Fonds Inc (part of Ivanhoé
Cambridge) and ICAMAP Investments S.à.r.l, through its offer for
the ordinary share capital of the Company at a price of 95.0 pence
per ordinary share that closed on 1 October 2019, acquired
approximately 68.8 per cent of the Company's ordinary shares.
easyHotel has an estate of 40 hotels with 3,759 rooms,
comprising 27 franchised hotels (2,332 rooms) and 13 owned hotels
United Kingdom: Old Street (London), Glasgow, Croydon,
Birmingham, Manchester, Liverpool, Newcastle*, Leeds, Sheffield,
Ipswich, Milton Keynes.
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, Amsterdam Schiphol Airport,
Rotterdam, The Hague, The Hague Scheveningen Beach, Maastricht),
Portugal (Lisbon), Switzerland (Basel, Zurich).
International: UAE (Dubai).
Hotel development pipeline
United Kingdom: Chester, Cardiff, Oxford*, Blackpool, Cambridge*
and Bristol(#) .
Europe: Ireland (Dublin), France (Paris-Charles de Gaulle
Airport*), Spain (Madrid)
United Kingdom: Derby
Europe: Spain (Malaga), Switzerland (Zurich: City Centre,
International: Israel (Tel Aviv - three locations)
* Hotels under an operating lease.
(#) Subject to planning permission.
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