EasyHotel reported a jump in revenue this morning after opening a raft of new sites. But profits dipped for the full year to 30 September as the company took a hit over planning issues with its Old Street hotel.
Total system sales jumped almost 40 per cent to £29.7m, while revenue similarly rose to £8.4m.
Underlying earnings were up 48 per cent to £2.3m.
But pre-tax profits dropped by more than a fifth to £860,000. This was due to a net book value impact of £240,000 after the company had to close two floors of its Old Street Easyhotel when it failed to gain retroactive planning permission for them.
Why it's interesting
The hotel group has expanded quickly this year, doubling the number of owned hotels on its books with new openings in Leeds Sheffield and Oxford.
It has also widened internationally, with franchised hotels now covering eight countries and another four in the pipeline.
The owned hotels contributed the most, accounting for 78 per cent of revenue. Analysts at Investec expect that the owned portfolio will double again next year, adding that the group was now at the beginning of a "growth curve".
London's well-documented hotel boom helped the business to grow this year, with the effects of the weaker pound now spreading to locations outside the capital. Revenue per available room (RevPAR) improved both in London and in the regions.
What EasyHotel said
Chief executive Guy Parsons said:
Whilst the wider macro-economic uncertainty continues to impact consumer confidence, we believe EasyHotel is well positioned.
The refinements that have been introduced to the business over the course of the last year are further strengthening our brand and ensuring that the EasyHotel offering is one that can support delivery of the Board's ambitious long-term strategy for growth.