One-off costs related to management changes plus income related to the termination of a South African franchise will hit the annual earnings at easyHotel, the company said this morning.
The group, which recruited former Travelodge boss Guy Parsons as chief executive in August, expects to report underlying trading earnings [EBITDA] of about £1.4 million to £1.5 million for the year.
The ‘super budget’ chain described trading for the year ending September 30 as being in line with expectations.
The group said it had benefited from full year contributions from hotels in Glasgow, expanded capacity at Old Street in London and the opening of a property in Croydon.
“This, together with the openings of franchisee hotels in Frankfurt and Prague, has resulted in revenue for the year ended being materially ahead of the prior year,” easyHotel said in a trading update.
“The board is pleased with the recent acquisitions of properties in Liverpool and Manchester and after reviewing the projects it now anticipates the likely opening of both hotels will be in late 2016, subject to receiving planning permission.”
A planned 107-room Brussels hotel planned to open in early 2017 will either be bought by the company’s Benelux franchisee or be developed as a directly owned and managed property at a cost of €9.4 million.
EasyHotel described its balance sheet as remaining “robust” with net cash of £22 million.
Parsons said: “In the two months I have been with the group I am pleased with its progress and direction of travel.
“Whilst the strategy is sound, I am currently having a hard look at how we can accelerate the growth of both the owned and franchised hotels as well as how we can improve the group’s core operational disciplines.”
A further update will be provided when annual results are issued on December 9.