EasyHotel has revealed it has strengthened its financial position by securing a £42.5m loan from Santander UK to support its British and European expansion, alongside an additional £6m loan from BRED Banque for one of its French hotel’s.
The UK’s new £42.5m loan from Santander UK will replace a previous agreement and includes a £7.5m increase. This loan facility marks the fourth collaboration between EasyHotel and Santander UK.
The funds will finance low-carbon investments in the UK such as the installation of heat pumps and smart metering systems as well as a full refurbishment of its Glasgow hotel. Similar low-carbon works will be taking place across nine hotels in France, Belgium, Spain and the Netherlands.
For the second consecutive year, EasyHotel has obtained funding from BRED Banque Populaire to expand in France, including financing for a new 110-bedroom hotel in Marseille. Set to open this autumn, the new hotel will feature the brand’s latest low-carbon room design which emits 21% less CO2 over a 50-year lifecycle vs the competition.
Marseille will be the fourth property in France, joining hotels in Paris Charles de Gaulle Villepinte, Paris Nord Aubervilliers and Nice Palais de Congrès.
The brand said its new refinancing agreements stem from a successful trading year, with its owned and leased 2023 hotel revenue climbing by 35% compared with 2022. Total revenue including franchised hotels surpassed €100m (£85m) for the first time.
Charles Persello, CFO 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. It has been a pleasure to work with Santander for the fourth time. 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 has a “robust pipeline” for owned and franchised developments into 2024 and beyond, with the potential to grow by 120 hotels over the next four years.