25 Mar 2020 10:53
25th March 2020
easyHotel plc
("easyHotel" or the "Group")
Update re COVID-19
easyHotel, the owner, developer, operator and franchisor of "super budget" branded hotels, today announces a further update in response to COVID-19.
The health and welfare of our staff and guests is our key priority and we have been working closely with our colleagues across both our owned and franchised hotels to assess the risks that they and our customers have been facing from the impact of the COVID-19 pandemic.
In line with government advice in their respective countries, both the Group's Barcelona and Nice hotels have closed, and following the announcement and requirement by the UK Government on 23 March 2020, the Board can confirm that all its owned hotels are now closed until further notice.
The Board is taking a number of immediate actions to protect the cash flows within the business. These include careful management of central costs and the reduction of capital expenditure and all non-essential operating costs as appropriate. Additionally, the Board is also reviewing the latest guidance from the UK Government regarding its support for UK businesses through the current crisis and the Group anticipates that its cash flows will benefit from some of these measures, including support to business rates and the Job Retention Scheme.
It is too soon to estimate the full impact that these closures and the previously announced deterioration of our forward booking position will have on the Group's performance for the current financial year ending 30 September 2020, however, trading is expected to end the year substantially behind the Board's expectations.
FINANCIAL POSITION
We have a robust balance sheet backed by a significant freehold and long leasehold estate. Additionally, the recently announced equity fundraising of £11 million (gross) due to complete on 26th March 2020, when aggregated with its existing cash balances, means that we currently have access to good levels of liquidity.
We remain in constant and close dialogue with our financial lenders and have amended our group committed facility to strengthen our financial position.
The Board remains confident in the Group's strategy over the longer term. It will continue to monitor the evolving situation closely and will update the market as appropriate.
Enquiries:
easyHotel plc | |
Scott Christie, Interim Chief Executive Officer | www.easyhotel.com |
Harm Meijer, Non-executive Chairman | http://ir.easyhotel.com |
Investec (Nominated Adviser and Broker) | +44 (0) 20 7597 5970 |
David Anderson
| |
Houston (Financial PR) | +44 (0) 20 3701 7660 |
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. Founded in 2004 by Sir Stelios Haji-Ioannou, easyHotel's strategy is to target the super budget segment of the hotel industry by offering great value and "clean, comfortable and safe" hotel rooms to its customers. Citrus Holdco, a company owned by a consortium comprising Cadim Fonds Inc (part of Ivanhoé Cambridge) and ICAMAP Investments S.à.r.l, through its offer for the ordinary share capital of the Company at a price of 95.0 pence per ordinary share that closed on 1 October 2019, acquired approximately 68.8 per cent of the Company's ordinary shares.
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
Owned hotels:
United Kingdom: Chester, Cardiff, Oxford*, Blackpool, Cambridge* and Bristol#.
Europe: Ireland (Dublin), France (Paris-Charles de Gaulle Airport*), Spain (Madrid)
Franchise hotels:
United Kingdom: Derby
Europe: Spain (Malaga), Switzerland (Zurich: City Centre, Limmatplatz).
International: Israel (Tel Aviv - three locations)
* Hotels under an operating lease.
# Subject to planning permission.