TIDMEZH
RNS Number : 9083Z
easyHotel PLC
23 May 2019
23 May 2019
easyHotel plc
easyHotel plc
("easyHotel", "the Group" or "the Company")
Old Street Office Pre-let
easyHotel, the owner, developer and operator of super budget
branded hotels, announces that it has pre-let all of the
self-contained office accommodation (15,500 sq. ft) at its property
at its 80 Old Street, London refurbishment project to a single
tenant.
The offices have been pre-let on a ten-year FRI (fully repairing
and insuring) lease at an annual rent of GBP59.50 per sq.ft with an
upward only rent review at year five. There is an initial rent-free
period. The new tenant, Knotel, is a global flexible office
operator that currently manages over 3 million sq. ft of space
across 200 locations spanning New York, San Francisco, Los Angeles,
Sao Paolo, Berlin as well as London.
The self-contained air-conditioned offices are on the upper
floors (3(rd) - 5(th) floors) of the property and include a roof
terrace. The offices have a dedicated reception area for which
Knotel will pay an additional rent of GBP29.75 per sq. ft.
The Group's newly refurbished 89-bedroom hotel (Ground 1(st) and
2(nd) floors) is due to open in June 2019.
At the end of September 2018, the net book value of 80 Old
Street was GBP12.9m. Since that time the Group has invested
approximately GBP7m refurbishing the entire property. Based on
preliminary advice, the Board believes that on completion of the
project and reopening of its London flagship hotel, this freehold
property is likely to be valued (at the current year end) at
substantially more than its current book value.
Commenting, Guy Parsons, Chief Executive of easyHotel plc
said:
"With the office space now let and the newly refurbished hotel
on track to open in June, both ahead of plan, we continue to be
very pleased with the outcome of the redevelopment programme at Old
Street.
"The recent preliminary valuation of the office space alone is
also very encouraging, with the incremental increase in the value
of the whole site already representing an immediate return on
investment for shareholders."
Commenting, Tom Dugarin, UK General Manager of Knotel said:
"Knotel continues its rapid London expansion with 80 Old Street,
taking our total UK footprint to approximately 240,000 square feet
across 18 locations. Knotel meets our customers' global workspace
necessities - from high-growth startups to enterprises alike - by
aligning their real estate and business needs with the flexibility
of our tailored, on-demand and scalable workplace platform."
Enquiries:
easyHotel plc
Guy Parsons, Chief Executive www.easyhotel.com
Officer
Gary Burton, Chief Financial http://ir.easyhotel.com
Officer
Investec (Nominated Adviser
and Broker) +44 (0) 20 7597 5970
David Anderson
Houston PR (Financial PR) +44 (0) 20 3701 7660
Kate Hoare / Laura Stewart
Notes to Editors:
www.easyhotel.com http://ir.easyhotel.com
easyHotel is the owner, developer, operator and franchisor of
branded hotels. Its strategy is to target the super budget segment
of the hotel industry by marketing "clean, comfortable and safe"
hotel rooms to its customers.
Operating hotels
easyHotel's eleven owned hotels currently comprise 1,216 rooms,
and it has a further 25 franchised hotels with 2,139 rooms.
Owned hotels:
United Kingdom: Old Street (London), Glasgow, Croydon,
Birmingham, Manchester, Liverpool, Newcastle*, Leeds, Sheffield and
Ipswich.
Spain: Barcelona
Franchise locations:
United Kingdom: Edinburgh, London Heathrow, Central London,
Luton, Reading and Belfast.
Europe: Belgium (Brussels), Bulgaria (Sofia), Germany (Berlin,
Frankfurt, Bernkastel-Kues), Hungary (Budapest), The Netherlands
(Amsterdam: City, Arena & Zaandam, Rotterdam, The Hague, The
Hague Scheveningen Beach, Maastricht), Portugal (Lisbon),
Switzerland (Basel, Zurich).
International: UAE (Dubai).
Hotel development pipeline
The Company's committed development pipeline of owned and
franchised hotels currently consists of:
Owned hotels:
United Kingdom: Milton Keynes, Chester, Cardiff, Oxford*,
Blackpool. Subject to planning consent: Cambridge* and Bristol.
Europe: Subject to planning consent: Ireland (Dublin), France
(Paris-Charles de Gaulle Airport*).
Franchise hotels:
Europe: Spain (Malaga), Switzerland (Zurich, Basel), Netherlands
(Amsterdam Schiphol Airport).
International: Iran, Sri Lanka, Turkey (Istanbul), UAE
(Dubai).
*Hotels under an operating lease.
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END
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