easyHotel PLC Correction - Development Update (0865R)

TIDMEZH

RNS Number : 0865R

easyHotel PLC

24 October 2019

24 October 2019

easyHotel plc

easyHotel plc

("easyHotel", the "Group" or the "Company")

CORRECTION: DEVELOPMENT UPDATE

The following amendments have been made to the DEVELOPMENT UPDATE RNS 7730Q released on 23 October 2019 at 7.00am, correcting the name of the Group's Tel Aviv franchisee partner to Easymalon Ltd (replacing R&N Services Ltd as previously notified).

All other details remain unchanged.

The full amended text is shown below.

23 October 2019

DEVELOPMENT UPDATE

The Board of easyHotel plc, the owner, developer and operator of "super budget" branded hotels, is pleased to provide the following development update.

Owned Hotel Development Pipeline

Paris Charles de Gaulle Airport, France

Further to the Company's announcement in December 2018, planning permission for the development of the 209-room easyHotel Paris-Charles de Gaulle Airport has now been granted.

The Group has secured an operating lease agreement with Groupe ADP (developer and manager of airports worldwide, including the three main airports in the Paris region). The hotel will be let on a 24-year FRI (fully repairing and insuring) lease at an annual rent of approximately EUR1.1 million.

The site is being developed by Linkcity Ile de France (a subsidiary of Bouygues Construction) and construction works will now begin imminently with the new hotel anticipated to open during the 2020/21 financial year.

Franchise Hotel Development Pipeline

Derby, UK

The Group is pleased to confirm that it has signed a franchise agreement with Ushba Ltd for the development of a new 110-room hotel in Derby. Located close to the city centre and main transport hubs of the city, the hotel is expected to open in 2021.

Tel Aviv, Israel

The Group has also signed a 20-year exclusive franchise agreement with Easymalon Ltd to support the brand's development in Tel Aviv, Israel. The agreement includes the development of three initial hotels in prime locations across the city, totalling 667 rooms. The hotels are expected to open by late 2022.

Commenting, Guy Parsons, Chief Executive of easyHotel plc said:

"I am pleased to report further progress against our strategy as we continue to expand our network of super budget hotels in city-centre locations, both in the UK and across international markets.

"The board believes that the current economic uncertainties will continue to present attractive investment opportunities for the brand and we look forward to announcing further updates in due course."

ENDS

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)                    [phone] 
 David Anderson 
 Houston (Financial PR)          [phone] 
 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 has an estate of 40 hotels with 3,759 rooms, comprising 27 franchised hotels (2,332 rooms) and 13 owned hotels (1,427 rooms).

Owned hotels:

United Kingdom: Old Street (London), Glasgow, Croydon, Birmingham, Manchester, Liverpool, Newcastle*, Leeds, Sheffield, Ipswich, Milton Keynes.

Spain: Barcelona

France: Nice

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, Amsterdam Schiphol Airport, 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: Chester, Cardiff, Oxford*, Blackpool, Cambridge* and Bristol(#) .

Europe: Ireland (Dublin(#) ), France (Paris-Charles de Gaulle Airport*).

Franchise hotels:

United Kingdom: Derby.

Europe: Spain (Malaga), Switzerland (Zurich, Basel), Israel (Tel-Aviv).

*Hotels under an operating lease.

(#) Subject to planning permission.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

UPDQZLFLKBFFFBV

(END) Dow Jones Newswires

October 24, 2019 12:28 ET (16:28 GMT)