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According to a news report, the potential valuation is around $500 million, but that would be a huge jump from the pre-pandemic value of just $170 million.
Sean O’Neill
EasyHotel confirmed it is exploring a sale of the privately held company following news reports that it was seeking a takeover.
“The Board of EasyHotel Limited acknowledges recent speculation in the media and confirms that it is evaluating various strategic options for the Company, including the potential sale of all of the issued and to be issued share capital of the Company,” the company said in a statement. It has appointed Rothschild and Company to negotiate.
SkyNews reported late last week that a deal could value EasyHotel at around half a billion dollars, or around £400 million.
EasyHotel was founded in 2004 by Sir Stelios Haji-Ioannou, nine years after he launched the low-cost airline EasyJet. Today, the company operates 49 hotels in 11 countries, around a third of which are in the UK. It owns 26 hotels and manages the rest on behalf of third-party investors.
Today, investment firms ICAMAP and Ivanhoé Cambridge own a 79 percent stake. They invested shortly before the pandemic in a deal that valued the company at around $170 million. Haji-Ioannou was left out of the deal.
Possible bidders include private equity firm TPG and real estate fund Proprium Capital Partners. EasyHotel said it was in talks with “a number of potential buyers” but did not name any names.
In a statement to Skift, EasyHotels said: “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. This may include new investors as well as other options. This is an exciting step as we prepare for our next chapter of growth.”
Karim Malak, who was appointed CEO in late 2021, told Skift last year that EasyHotel aims to lure properties away from big brands like Accor and IHG by convincing owners they can generate higher returns with a slimmed-down model.
EasyHotel claims to accommodate 20 to 30% more revenue-generating guests per square meter than its competitors.
“Many hotel owners feel that they are too dependent on the big players and therefore need to diversify,” says Malak. “To take a random example: If you live in a city where there are already six Ibises, you practically cannot add a seventh.”
EasyHotel has separately appointed Gary Burton as Chief Financial Officer, who will take up his post on October 29. Burton will succeed Marc Vieilledent, who will be appointed Group Development Director.
Development of the stock index for the accommodation sector since the beginning of the year
What do I see? The performance of stocks from the hotel and short-term rental sector in the ST200. The index includes companies publicly traded on global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations and timeshare.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies valued at over $1 trillion into a single number. Learn more about financial performance in the hotel and short-term rental sector.
Read the full methodology behind the Skift Travel 200.
