Founder Sir Stelios Haji-Ioannou says the flotation will lead let him 'step back' from the company
Founder Sir Stelios Haji-Ioannou says the flotation will lead let him 'step back' from the companyReuters

easyHotel, founded by Sir Stelios Haji-Ioannou, will launch an IPO on 30 June to fund the expansion of the super budget hotel chain.

The group confirmed in a statement that the international owner, developer, operator and franchisor of branded hotels will float the group on the London's mid-cap market Aim by the end of month with the market capitalisation of £50m (€62m, $85m).

"This is a great business model which will continue to prosper as it grows and meets the demand of budget conscious travellers around Europe and beyond," said founder Haji-Ioannou.

"The transparency and scrutiny of the public markets will also allow me to step back from the company and enable me to focus on continuing my diversification strategy into other business and philanthropic activities. I anticipate I will remain a significant and supportive shareholder for a very long time."

easyHotel currently has a hotel portfolio comprising approximately 1,600 rooms consisting of two wholly-owned freehold hotels, and 17 franchised hotels, as well as one long leasehold development site.

It says that it plans to use £30m in new equity raised to pursue the company's roll-out of owned hotels and own 55.7% of the group after it floats.

"We are pleased at the level of interest in easyHotel's growth story and the support that we have received from investors. easyHotel's principal growth strategy is the roll-out of further owned hotels in major European gateway cities," said Jan Åstrand, Chairman at easyHotels.

"The proceeds from the placing will be used to acquire and develop new hotel sites, enabling the Company to capitalise on the significant growth opportunities available in the 'super budget' hotel segment through the strength and international recognition of the 'easy' brand."