EasyHotel secures £42m loan as it aims to grow by 120 hotels

EasyHotel has secured a £42.5m loan from Santander UK as it looks to open a further 120 hotels by 2028.

The budget brand said it was working on “more new hotel deals than ever before” after its total revenue hit €100m (£85m) for the first time in 2023.

EasyHotel has 42 hotels in 11 countries, including 19 in the UK. Its sites are based near city centres or travel hubs with its cheapest rates starting from around £27 a night in Cardiff and Newcastle.

The Santander loan marks a £7.5m increase on a previous agreement and is the hotel group’s fourth collaboration with the bank.

It will also be used to finance low-carbon investments across the UK, including the installation of heat pumps and smart metres and a full refurbishment of easyHotel Glasgow.

EasyHotel has also secured a separate £6m loan from BRED Banque Populaire to open its fourth property in France. A new 110-bedroom hotel in Marseille is set to open his autumn, following the launch of sites in Paris and Nice.

It follows a strong year of trading for the brand, which said its owned and leased hotel revenue rose 35% compared to 2022.

Two-third of easyHotel sales now come from continental Europe, and the group said openings in Paris and Dublin had outperformed budget.

Charles Persello, chief financial officer of easyHotel, said: "2023 was a record year for revenue at easyHotel driven by our great value product and leading easy brand awareness in travel.

“Looking ahead, our development team are working across more new hotel deals than ever before as we step up our growth of low carbon and great value hotels across Europe over the coming years."

EasyHotel said it saw potential to grow by 120 hotels over the next four years, with upcoming sites set to open in Zurich, Barcelona, Alicante and Valencia.