easyHotel PLC easyHotel secures lease for hotel in Cambridge (2111I)

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RNS Number : 2111I

easyHotel PLC

20 March 2018

20 March 2018

easyHotel plc

easyHotel plc

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

easyHotel secures lease for purpose-built 100 room super budget hotel in Cambridge

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 Cambridge, for the development of a new purpose-built easyHotel. The agreement is subject to planning permission.

Located on Newmarket Road, the site is situated less than 1 mile from Cambridge City Centre. The site is to be developed into a new purpose-built 100-room easyHotel. The hotel is expected to open in 2019.

Cambridge is a popular tourist destination, famous for its University and Museums. It is also home to Silicon Fen, one of the UK's most dynamic technology hubs. The Cambridge hotel market has experienced strong growth in recent years and suitable development sites are in high demand.

Cambridge will be the Group's third leased site. The hotel will be let on a 25-year FRI (fully repairing and insuring) lease at an annual rent of approximately GBP625,000. The hotel will be developed by MP Merchant, in line with easyHotel's specifications.

As previously outlined, whilst the Board is focused on accelerating the Group's expansion through owned and franchise hotel development, it will consider leased sites on a specific and limited basis for strategic locations where the acquisition of freehold or long freehold interests do not meet the Board's strict investment criteria.

Commenting, Guy Parsons, CEO of easyHotel plc said:

"Having recently completed a successful fundraising to fund the acceleration of our owned hotel portfolio, this announcement is a clear signal of our intent and ambition to expand our development pipeline, targeting popular business and leisure city centre locations.

"The Cambridge site takes easyHotel's pipeline of owned/leased development projects to 1,041 rooms, adding one of the UK's most thriving and popular cities to our network. The Board looks forward to announcing further opportunities in due course."

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)                    [phone] 
 David Anderson 
 Houston PR (Financial 
  PR)                            [phone] 
 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 seven owned hotels currently comprise 702 rooms, and it has a further 19 franchised hotels with 1,641 rooms.

Owned hotels:

Old Street (London), Glasgow, Croydon, Birmingham, Manchester, Liverpool, Newcastle*.

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 (Milton Keynes, Cardiff, Oxford* and Cambridge*).

Franchise hotels:

UAE (Dubai), Germany (Bernkastel-Kues), Portugal (Lisbon), Turkey (Istanbul), UK (Belfast, Reading), Iran, Sri Lanka, Netherlands (The Hague Scheveningen Beach, Maastricht).

*Hotels under an operating lease.

This information is provided by RNS

The company news service from the London Stock Exchange

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March 20, 2018 03:00 ET (07:00 GMT)