Fever tree update24 Jul 2018 08:58
Has 115 million shares in issue, current sp around 3400, revenue £100 million, margin 53%.
Just shows what is possible in a very few years. Easyhotel will continue to grow as long as the business model works and it is. So these revenue comparisons are more than possible.
Premier inn and travel lodge are trying to match the more premium offer but lower costs which is really hard based on how hotels are designed. I think we will see them start to compete directly with easyhotel with similar formats.
They only current way is to cost cut within which isn’t As easy and like the premier I recently stayed out less investment which shows through.
Easyhotel secret is room design, build in the first place, example being Dublin where they take s standard design of around 94 rooms and can turn the same building block into 135ish, this guarantees the margins for life as long as the service is good.
Also in many cases involved a coffee shop on the bottom floor which creates more value in rent than a reception area
They are also flexible enough and brand strong due to easy jet to expand widely and people recognise and trust the brand.
Everyone knows you get less however if booked in advance you pay less. If they keep growing this could become a very big global brand