easyHotel has announced a conditional placing of up to 38,000,000 new ordinary shares at 100.0 pence apiece to raise £38.0 million, before expenses. The placing shares represent approximately 60.8% of the existing ordinary shares and the price represents a premium of approximately 18.3% to the closing mid-market price of 84.5 pence on 27 September. Proceeds of the placing to be primarily utilised to fund owned hotel roll-out strategy. Chief executive Guy Parsons said: "Since IPO easyHotel has made significant progress in line with its strategy to speed up owned hotel development and accelerate the roll-out of franchise hotels to drive high EBITDA returns on investment. "With more opportunities available than had been expected, and over 4,500 rooms committed or identified in the owned and franchise development pipeline, the proceeds of the Placing will primarily be used to fund the continuation of our owned hotel roll-out to deliver enhanced financial returns, whilst consolidating easyHotel's position as a leader in the super budget hotel market in Europe and the Middle East."
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