August Week 3: EasyHotel enters discussions on potential business sale.

The ultra-budget brand announced it is in talks with 'several potential buyers.'

Super budget hotel chain easyHotel has confirmed that it is exploring a potential sale of the business.

The company released a statement on the London Stock Exchange following reports from Sky News that multiple suitors are competing for a ￡400 million takeover of the chain.

In the statement, EasyHotel 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.”

While the brand has acknowledged discussions with "a number of potential purchasers," it has not disclosed any specific parties. However, Sky News reports that private equity firm TPG and real estate fund Proprium Capital Partners are among those expressing interest.

The hotel chain has appointed Rothschild & Co to oversee the process, but it emphasized that there is “no certainty” any offer will be made for the business.

A spokesperson for EasyHotel commented: "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."

Who are EasyHotel?

EasyHotel was founded in 2004 by Sir Stelios Haji-Ioannou, who also launched the budget airline EasyJet in 1995. Since then, EasyHotel has grown significantly, operating 49 locations across 11 countries, including 19 in the UK. The brand is known for offering no-frills, city-centre accommodation with rooms starting at around ￡75 per night in London.

Earlier this year, EasyHotel secured a ￡42.5 million loan from Santander UK, with plans to open an additional 120 hotels by 2028. Despite delisting from the London Stock Exchange in 2020 after investor consortium Bidco took control of the board, the chain continues to pursue ambitious growth targets.

Conclusion

As EasyHotel navigates these discussions, the potential sale could mark a pivotal moment in its history. With solid backing from major shareholders and ambitious expansion plans underway, the chain remains committed to its low-cost, no-frills approach that has fueled its growth across the UK and internationally. Whether through new investors or other strategic options, EasyHotel is poised for continued expansion, with the potential sale offering an opportunity to further accelerate its development in the competitive budget hospitality market.