Easyhotel significantly slashes losses as return to profit nears
Easyhotel significantly slashed its losses as it took a huge step towards returning to profit for the first time since before the Covid-19 pandemic.
The London-headquartered budget hotel chain has posted a pre-tax loss of €1.8m (£1.5m) for 2024, down from the €10.5m (£8.9m) it reported for 2023.
The latest pre-tax loss figure is the lowest Easyhotel has reported since it fell into the red in the year to September 2019.
Since then, its pre-tax losses have totalled around £60m.
New accounts filed with Companies House also show that Easyhotel’s revenue increased from €77.3m to €80m in 2024.
Easyhotel was set up by Greek Cypriot entrepreneur Stelios Haji-Ioannou in 2004 and floated in June 2014 before quitting AIM in 2020.
Earlier this month, it was announced that the chain had been bought by real estate fund Tristan Capital Partners.
European expansion to boost Easyhotel
A statement signed off by the board said: “The brand’s simple and affordable offering is well aligned to the needs of today’s discerning and value conscious traveller.
“The strong performance of the new 2024 and 2023 openings in Marseille, Dublin and Paris Nord Aubervillers confirm this and gives confidence in the growth potential of the group.
“Long-term structural growth drivers in the international branded hotel sector are still strong and the group’s strategy of selective focus on hotel development, with a mix of freehold and leasehold, in primary European cities remains.”
On its future, Easyhotel added: “Our expectation is that in the medium and long term, our business will continue to grow and to outperform the overall market as it did in previous years.
“The newest hotels in our estate have traded positively and provide confidence that the high-quality developments in key cities with the group is now focusing on will produce long-term returns for our shareholders.
“We remain confident on the development pipeline and the potential for the brand in continental Europe.
“We have the right skills within the management team to allow the business [to] deliver against the board’s vision.”
In the UK, Easyhotel has locations in Belfast, Birmingham, Cardiff, Croydon, Edinburgh, Glasgow, Ipswich, Leeds, Liverpool, Shoreditch, Paddington, South Kensington, Victoria, Manchester, Milton Keynes, Newcastle, Oxford, Reading and Sheffield.