Super budget chain easyHotel today reported a “most encouraging” outlook as annual profits rose by more than 38%.
Figures for the year to September 30 show a pre-tax profit of £1.09 million against £0.79 million in the same period a year earlier.
This came as sales grew by 6.8% to £21.32 million in the first year with former Travelodge boss Guy Parsons at the helm.
The company recently raised £38 million through a share placing to help fund expansion of wholly-owned hotels.
Five new owned hotels will add 576 rooms by early 2018 as part of a pipeline of 1,527 rooms in development. More than 950 rooms will be added through franchise agreements without direct capital investment by easyHotel.
The company said: “The outlook for the business is most encouraging. With the right team now in place, a broader shareholder base and significant institutional support, the group has an exciting opportunity ahead. We will continue to update shareholders regularly on our progress.”
Chief executive Parsons said: “We are on track to deliver the development plans we announced in September 2016.
“2015/2016 was a transformational year for easyHotel, with excellent operational progress made across the business and a significant acceleration of both our owned and franchise hotel development pipelines.
“The board remains confident that by exploiting the strength of the brand, easyHotel will continue to outperform the budget hotel sector as consumers seek out the best value for money.
“With the experienced team we now have in place and the proceeds of our recent fundraising, we are in an excellent position to expand the easyHotel brand and deliver improving returns for our shareholders.”
He added: “By offering our customers a good night’s sleep at a super price, and a quick and an easy way to make a booking, we believe that we will attract new customers and encourage significant repeat visits.”