EasyHotel has confirmed that it is exploring the possibility of selling the company, following reports that it is seeking acquisition. The company has hired Rothschild and Company to handle the potential deal talks, which could value EasyHotel at approximately $500 million. Founded in 2004 by Sir Stelios Haji-Ioannou, EasyHotel currently operates 49 hotels in 11 countries, with a third of its properties located in Britain. Investment firms ICAMAP and Ivanhoé Cambridge currently hold a 79% stake in the company, after investing in a deal that valued EasyHotel at $170 million just before the pandemic, sidelining Haji-Ioannou.
Potential bidders for EasyHotel include private equity firm TPG and real estate fund Proprium Capital Partners. The company stated that it is in talks with several possible purchasers, although no specific names were provided. EasyHotel’s major shareholders are exploring new financing options to support the company’s future growth, which may involve new investors. The company aims to continue expanding with new hotels, with CEO Karim Malak stating that EasyHotel hopes to attract properties from major brands like Accor and IHG by offering higher returns through a simplified business model.
The company has appointed Gary Burton as its new chief financial officer, who will assume the role on October 29. Burton will replace Marc Vieilledent, who will transition to the role of group development director. EasyHotel claims to generate 20-30% more revenue-generating guests per square meter than its competitors, positioning it as an attractive option for hotel property owners looking to diversify. The brand emphasizes its ability to provide higher returns on investments compared to larger hotel chains, appealing to owners seeking new growth opportunities.
The Skift Travel 200 (ST200) tracks the financial performance of nearly 200 travel companies, worth a combined total of over a trillion dollars. Within the ST200, the Accommodations Index monitors the stock performance of hotels and short-term rental companies across global markets. This index includes publicly traded companies in the hotel industry, such as international and regional hotel brands, hotel REITs, hotel management firms, alternative accommodations, and timeshares. The index provides insights into the overall financial health of the accommodations sector within the travel industry.
EasyHotel’s potential sale comes at a time when the travel industry is recovering from the impact of the pandemic, with companies exploring strategic opportunities to grow and adapt to changing market conditions. The company’s willingness to consider acquisition offers indicates its openness to new investment opportunities that could support its expansion plans. As the hotel sector continues to evolve, EasyHotel’s unique business model and focus on revenue generation per square meter set it apart from traditional competitors, making it an attractive prospect for investors looking to capitalize on the recovery of the travel industry.
