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Shareholder information

Business description

easyHotel is an international owner, developer, operator and franchisor of "easyHotel" branded hotels. easyHotel's strategy is to target the "super budget" segment of the hotel industry by providing “clean, comfortable and safe” hotel rooms to its customers. easyHotel currently has a hotel portfolio comprising approximately 1,900 rooms consisting of 3 owned hotels and 18 franchised hotels.

The Group was established in 2004 as a wholly owned subsidiary of easyGroup which is ultimately owned by the founder of the "easy" company concept, Sir Stelios Haji-Ioannou.

Country of incorporation: United Kingdom (UK)
Main country of operation: United Kingdom (UK)

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Overview of strategy

easyHotel’s principal growth strategy is the roll-out of further owned hotels in major European gateway cities. Whilst the Directors see significant potential across European cities, the owned investment is likely to focus on the UK, principally London, as well as probably one other European country in the near term.

Given the high returns on Invested Capital generated from both existing owned and franchised hotels, the Directors believe that strong returns on Invested Capital can be achieved on owned asset investment in these major cities. A key feature of easyHotel’s roll-out strategy is the Board’s belief that there is sufficient demand in most European cities to accommodate multiple easyHotel assets. For example, the Directors believe that easyHotel can at least double its hotel estate in London over the next few years.

Franchised hotel growth will continue to be a focus for easyHotel; however, given the planned investment in easyHotel’s owned estate, such income streams derived from franchisees are likely to reduce significantly as a proportion of easyHotel’s overall profitability. Nevertheless, given easyHotel’s franchise model involves no capital outflows, the Board sees franchising as a helpful way of enhancing returns on Invested Capital using the strength of the “easyHotel” brand.

The Directors also believe there are opportunities for easyHotel to further optimise existing revenues. easyHotel’s management has identified the need to boost these opportunities through the hiring of a small number of central operation staff, such as marketing, in particular in the digital environment, as well as a need to boost social media presence. This would also involve limited spend on enhancing easyHotel’s website and enhancing its capability to accommodate bookings through mobile devices.

The Directors also believe that easyHotel can improve ancillary hotel spend, but the focus will remain on maximising hotel room revenues through high room occupancy rates in the existing estate.

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Exchange/trading platform

The securities of easyHotel plc (Ticker: EZH) are traded on the AIM market of the London Stock Exchange (LSE).

Currently securities are not traded on any other exchange or trading platform.

Significant shareholders and shares in issue

As at 31 December 2016, easyHotel plc had 100,500,000 ordinary shares of 1p in issue. Of these 69.3% were not in public hands. No shares are held in treasury.

Significant Shareholders (at 31 December 2016) % of Share Capital held (directly or indirectly)
easyGroup Holdings Ltd 34.6
Icamap Advisory 29.3
Polar Capital LLP 8.0
Hargreave Hale 5.6
Aberdeen Holdings 5.2

There are currently no restrictions on the transfer of the AIM securities.