LONDON (Alliance News) - easyHotel PLC on Wednesday said it has raised GBP38.0 million through the placing of 38 million shares at 100 pence each.
Shares in the budget hotel operator were trading up 14% at 96.00p on Wednesday morning following the announcement.
easyHotel will use the proceeds to fund its owned hotel roll-out strategy, for which it has a pipeline of 2,437 owned hotel rooms. It also has a pipeline of 2,075 franchise hotel rooms, and expects investment in its hotel pipeline to be materially earnings per share enhancing in the medium term.
"With more opportunities available than had been expected, and over 4,500 rooms committed or identified in the owned and franchise development pipeline, the proceeds of the placing will primarily be used to fund the continuation of our owned hotel roll-out to deliver enhanced financial returns, whilst consolidating easyHotel's position as a leader in the super budget hotel market in Europe and the Middle East," Chief Executive Guy Parsons said in a statement.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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