Book a hotel

Strategy

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.