Strategy at the heart of our business model

Our Board believes that our stated strategy continues to be the best way to achieve the Group’s growth targets.

Customer understanding
  • Budget hotels are chosen because of location and price – consumers choose them because they’re close to where they need to be.
  • Customer needs are relatively simple: a great bed, well-trained, friendly staff and well-designed rooms.
  • A brand that is easy and simple to do business with.
A market opportunity
  • The significant independent sector is in structural decline.
  • The branded budget sector has grown faster than any other sector in the UK hotel industry for the last 30 years, and is forecast to continue doing so.
  • easyHotel can steal market share from other operators, creating a medium-term opportunity to open 8,000 owned rooms and 4,000 franchised rooms in the UK, 4,000 owned rooms in Europe and 11,000 franchised rooms opportunities in Europe.
  • Further opportunities exist in Africa, the Far East, Australasia and North, South and Central America.
Maximising revenues
  • We don’t have restaurants in our hotels – we use every available space to sell bedrooms.
  • We offer a consistent, good quality room at a low price. As a result, our occupancies are high.
  • Revenues are maximised via the revenue management and eCommerce strategy.
Delivering shareholder returns
  • Our operating margins are high. We outsource our cleaning to specialists and keep our staffing levels to a minimum.
  • We use a combination of owned and franchised hotels. Franchised hotels build a brand presence without the need for capital investment, deliver a high incremental margin and increase Group ROCE.
  • The Group adopts strict investment criteria for owned hotel development (including leased hotels) that will contribute towards the Group ROCE target of 15%.
  • With a strategy to dispose of non-core assets in place, maximising the capital available to build bedrooms.