easyHotel losses drag down shares

The price of shares in AIM-listed easyHotel (LON:EZH) dropped by 10.86% to 78p (as of 12:10 GMT) after it booked a loss before tax for the year ended 30th September. Revenues for the period were up by 55%, but margins declined and the company faced significant impairments on its Ipswich site.

Interim CEO Scott Christie commented: “easyHotel has demonstrated the strength and resilience of its super-budget model, continuing to outperform a challenging market on a like-for-like basis over the course of the year. The Group has made good progress against its strategy for growth, with six new owned and franchised hotel openings and the successful reopening of our flagship hotel in Old Street, London, following refurbishment.

“Looking to the year ahead, whilst the uncertain political and economic landscape will continue to impact consumer sentiment, we remain confident that the easyHotel brand will continue to outperform the sector as consumers seek out the best value for money.

“We are excited by the development pipeline and the potential for the brand in Europe. With strong supportive shareholders behind us, the significant investments we have made in the business will ensure we have the resources to continue to expand and enhance the business and deliver the board’s ambitious strategy for targeted growth“.