easyHotel PLC – Interim Results
easyHotel, the owner, developer and operator of super budget branded hotels, today announces its results for the six months ended 31 March 2019.
Financial Highlights
| Six Months Ended 31 March (£m) | 2019 | 2018 | |
| Total system sales[1] | 20.2 | 16.1 | +25.3 % |
| Revenue | 7.26 | 4.76 | +52.6 % |
| Adjusted EBITDAR[2] | 1.80 | 1.12 | +60.7% |
| Adjusted EBITDAR margin | 24.8% | 23.6% | +1.2 ppts |
| Adjusted EBITDA | 1.46 | 0.98 | +48.2 % |
| (Loss)/Profit before tax | (0.12) | 0.09 | (237)% |
| Basic earnings per share (pence)
Interim dividend per share (pence) |
(0.1)
0.08p |
0.1
0.07p |
(0.1)
|
- Adjusted EBITDA growth of +48.2% reflects strength of proposition and continued market outperformance.
- Adjusted EBITDAR margin increased by +1.2 ppts to 24.8% (2018: 23.6%) from central costs representing a lower percentage of total revenue.
- Loss before tax of £0.12m (2018: profit of £0.09m) impacted by the temporary closure of Old Street and higher depreciation from new hotels.
- £14.2m invested in new hotel development with £30.3m of cash and £33.9m of bank financing headroom (committed and uncommitted facilities) to continue to expand hotel estate.
- Our newly developed self-contained office accommodation (15,500 sq. ft) at our property at Old Street, London (3rd – 5th floors), has been pre-let to a single tenant.
Business Highlights
Fourth Year Market Outperformance Across Owned Hotels
- Owned hotel RevPAR up 10.1%, outperforming the market[3] by 9.7 ppts
- Franchise like-for-like RevPAR down 3.5%, driven primarily by the hotels in the Benelux region.Continued Network Expansion – 9% increase in total continuing rooms during first half of the year
- Three new hotels totalling 290 rooms opened during the period and trading in-line with expectations.
- Five new hotels totalling 517 rooms due to open during the second half and a further nine new owned hotels (1,096 rooms) planned to open in next 24 months.
- 354 owned hotel rooms added to the development pipeline, including the Group’s first owned hotel in France.
Commenting, Guy Parsons, CEO of easyHotel plc, said:
“easyHotel has delivered a market outperformance and good profitable growth in the first half of the year against a challenging market. The tactical decisions taken early in the period to drive market share through our OTA strategy has underpinned this, and we have continued to benefit from the impact of our ambitious opening programme.
“Over the course of the last two years we have added a total of 18 hotels to our portfolio, significantly expanding our network in key business and tourist destinations across the UK and Europe. Our most recent openings have not only traded in line with our expectations but have also tracked the good performance seen from our new hotels opened in the prior year, which in the current trading environment is very encouraging. Our UK network of owned hotels is already well established, with a strong opening programme in place for the next two years. The Group is now focussed on replicating this success across Europe.
“The hotel market outlook remains uncertain, particularly in the UK where the ongoing Brexit negotiations continue to dampen consumer confidence. We are by no means immune, but the maturing profile of our hotels and our strong development pipeline will support continued growth and enhance our earnings profile. Combined with the careful control of our central costs, these efforts give the Board confidence in meeting its expectations for the year ending 30 September 2019.”