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easyHotel (UK) Continues National and International Development

29 Oct 2019 - Budget hotel developer and operator easyHotel PLC on Wednesday announced a series of development updates for hotels in the UK and abroad.

easyHotel said it has received planning permission to develop its 209-room owned-hotel at Paris-Charles de Gaulle Airport.

The company has secured an operating lease agreement for the hotel with Groupe ADP, which manages the three main airports servicing Paris. The hotel will be let on a 24-year fully repairing and insuring lease at an annual rent of about EUR1.1 million.

Construction work will begin imminently, easyHotel said, with the hotel expected to open during the 2021 financial year.

easyHotel also announced two new franchise development deals.

In Derby, in the UK, the company has signed a franchise agreement with Ushba Ltd for the development of a new 110-room hotel in the city centre. The hotel is expected to open in 2021.

Elsewhere, easyHotel has signed a 20-year exclusive franchise agreement with R&N Services Ltd to support the developments in Tel Aviv, Israel. The agreement includes the development of three initial hotels in "prime locations" in Tel Aviv, expected to total 667 rooms.

The hotel are expected to open by the end of 2022.

"I am pleased to report further progress against our strategy as we continue to expand our network of super budget hotels in city-centre locations, both in the UK and across international markets," Chief Executive Guy Parsons said.

He added: "The board believes that the current economic uncertainties will continue to present attractive investment opportunities for the brand and we look forward to announcing further updates in due course."

Shares in easyHotel were untraded in London on Wednesday but last closed at 94.00 pence each.