EasyHotel confirms talks over possible sale of the business

Super budget brand EasyHotel has confirmed it is exploring a possible sale of the business.

It issued a statement on the London Stock Exchange after Sky News reported suitors were vying for a £400m takeover of the chain.

The statement said: “The board of EasyHotel Limited notes the recent media speculation and confirms that it is exploring various strategic options regarding the company, including the possible sale of the entire issued, and to be issued, share capital of the company.”

EasyHotel said it was in discussions with “a number of potential purchasers” but was not required to identify them.

However, Sky News reported private equity firm TPG and real estate fund Proprium Capital Partners are among those understood to have expressed an interest .

The hotel chain has appointed Rothschild and Co to act on its behalf but said there was “no certainty” any offer would be made for the business.

An EasyHotel spokesperson said: "As we continue to expand with new hotels, our major shareholders, ICAMAP and Ivanhoé Cambridge, are exploring new financing options to support our future growth, which may include new investors as well as other options.

"This is an exciting step as we prepare for our next chapter of growth."

EasyHotel was founded in 2004 by Sir Stelios Haji-Ioannou, nine years after he launched the budget EasyJet airline.

The group now trades from 49 sites in 11 countries, including 19 in the UK.

It is billed as a stripped back, low-cost option, with city centre rooms ranging from around £75 a night in London.

Earlier this year the brand secured a £42.5m loan from Santander UK with the aim of opening a further 120 hotels by 2028.

EasyHotel delisted from the London Stock Exchange in 2020 after investor consortium Bidco took control of the board.