Correction: Trading Update and Pre-close Statement

RNS Number : 0628Y easyHotel PLC

03 May 2019

3 May 2019 easyHotel plc easyHotel plc

("easyHotel", "the Group" or "the Company")

CORRECTION: TRADING UPDATE AND PRE-CLOSE STATEMENT

The following amendments have been made to the Trading Update and Pre-Close Statement RNS 8253V released on 11 April 2019 increasing the reported system sales, revenue and owned hotels like-for-like RevPar for the period:

· ·

Total system sales up 25% to £20.2m (31 March 2018: £16.1m)

Revenue up 53% to £7.3m (31 March 2018: £4.8m)

·

Owned hotels like-for-like RevPar up 10.1%.

All other details remain unchanged.

The full amended text is shown below.

3 May 2019

Trading Update and Pre-Close Statement

Fourth year of market outperformance for owned hotels

easyHotel, the owner, developer and operator of super budget branded hotels, today issues the following trading update for the six months ended 31 March 2019 ("the period").

Trading Overview

Despite the ongoing poli9cal and economic uncertainty facing the UK, the Group con9nued to outperform its hotel markets in the UK and across Europe during the period.

·

Total system sales up 25% to £20.2m (31 March 2018: £16.1m)

·

Revenue up 53% to £7.3m (31 March 2018: £4.8m)

·

Owned hotels like-for-like RevPar up 10.1%.

·

Franchise like-for-like RevPar down 3.5%Both the Group's owned and franchised hotels significantly outperformed the market in the UK. Looking across the wider hotel market, falling consumer confidence has dampened total hotel demand, with RevPar up 0.4% during the period (STR MSE UK). Rela9vely strong market demand in London was off-set by a weaker regional market performance, with a marked deteriora9on in RevPar across the UK in Q2 as compared with Q1. As a result the short-term market outlook remains uncertain.

The Group's European franchised hotels performed less strongly than those in the UK, despite European hotel markets generally outperforming the UK. Trading is mixed on a country-by-country basis. As in the UK, overall market demand has softened in 2019.

Our hotel in Dubai is trading in-line with the wider market. The imbalance between supply and demand con9nues to affect RevPar.

New Hotel Openings

Our new owned hotel in Ipswich and two further franchised hotels in Lisbon and Bernkastel Kues have added 290 rooms to our network during the period and are already trading in line with management's expectations.

Owned Hotel Development

Further new owned hotel openings at Milton Keynes (124 bedrooms) and our refurbished Old Street hotel (89 rooms) are well advanced. Both hotels and the 15,500 sq. F. of self-contained office space at Old Street are expected to open this June, which will be earlier than we had expected. Already there is encouraging interest in leasing the offices.

The Group has con9nued to extend its pipeline during the period. In the UK, the 145-bedroom easyHotel Bristol development was added, subject to planning permission. Further to the successful opening of the Group's flagship Con9nental European hotel in Barcelona last summer, the establishment of the Group's European development team has added a 209 room easyHotel at Paris-Charles de Gaulle Airport to the development pipeline. A planning decision is expected soon.

We have now received planning permission for the Group's hotels in Oxford (180 bedrooms) and Blackpool (103

We have now received planning permission for the Group's hotels in Oxford (180 bedrooms) and Blackpool (103 rooms), both of which are expected to open in the 2020/21 financial year. Other new owned hotel projects currently in development include Cardiff (120 rooms) which will open next (financial) year and Cambridge (100 rooms), Chester (109 rooms), and Dublin (130 rooms) which are anticipated to open in the Group's 2020/2021 financial year.

Franchised Hotel Development

Franchised hotel openings for this financial year include Zurich (150 rooms, across more than one hotel), Amsterdam Schiphol Airport (154 rooms) with Malaga (146 rooms) and Bur Dubai (300 rooms) expected to open in the next financial year.

Commenting, Guy Parsons, CEO of easyHotel plc, said:

"Ongoing poli9cal and economic uncertainty con9nues to impact consumer confidence as demonstrated by weakening quarter-on-quarter demand across the market, both in the UK and in Europe. However, our ac9ons to drive occupancy, including working closely with on-line travel agents (OTAs) to increase brand awareness, has meant that easyHotel has continued to outperform its competitors as consumers seek out the best value for money.

"Subject to our con9nued overall market outperformance as we enter our key trading period and whilst mindful of the ongoing uncertainty, the Board expects the ouNurn for the current financial year to be in line with its expectations.

"We remain focused on our strategic priori9es and believe the current economic uncertain9es will present aNrac9ve investment opportuni9es to con9nue to expand our development pipeline in our target des9na9ons, crea9ng value for our shareholders and underpinning the long-term growth of the brand."

Enquiries:

easyHotel plc

Guy Parsons, Chief Executive Officer	www.easyhotel.com
Gary Burton, Chief Financial Officer	http://ir.easyhotel.com
Investec (Nominated Adviser and Broker)	[phone]
David Anderson
Houston PR (Financial PR)	[phone]
Kate Hoare / Laura Stewart
Notes to Editors:
www.easyhotel.comhttp://ir.easyhotel.com

easyHotel is the owner, developer, operator and franchisor of branded hotels. Its strategy is to target the super budget segment of the hotel industry by marketing "clean, comfortable and safe" hotel rooms to its customers.

Operating hotels

easyHotel's eleven owned hotels currently comprise 1,219 rooms, and it has a further 25 franchised hotels with 2,139 rooms.

Owned hotels:

United Kingdom: Old Street (London), Glasgow, Croydon, Birmingham, Manchester, Liverpool, Newcastle*, Leeds, Sheffield and Ipswich.

Spain: Barcelona

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, RoNerdam, The Hague, The Hague Scheveningen Beach, Maastricht), Portugal (Lisbon), Switzerland (Basel, Zurich).

International: UAE (Dubai).

Hotel development pipeline

The Company's committed development pipeline of owned and franchised hotels currently consists of:

Owned hotels:

United Kingdom: Milton Keynes, Chester, Cardiff, Oxford*, Blackpool. Subject to planning consent: Cambridge* and Bristol.

Europe: Subject to planning consent: Ireland (Dublin), France (Paris-Charles de Gaulle Airport*).

Franchise hotels:

Europe: Spain (Malaga), Switzerland (Zurich, Basel), Netherlands (Amsterdam Schiphol Airport).

International: Iran, Sri Lanka, Turkey (Istanbul), UAE (Dubai).

*Hotels under an operating lease.

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