The AIM-listed firm reported a pre-tax loss for the year ended 30 September of £3.6mln compared to an £870,000 profit in 2018, while revenues rose to £17.6mln from £11.3mln.
The swing to loss was attributed to a £3mln impairment charge relating to the company’s hotel in Ipswich, as well as £1.4mln in costs associated with a change in ownership structure in the latter part of the year.
The group also did not pay out a final dividend to focus on growing its estate, meaning its total dividend for the year fell to 0.08p per share from 0.22p the year before.
However, the company also reported that like-for-like revenue per available room (RevPAR) in its owned hotels was up 4.6%, outperforming the market for the fourth year in a row and offsetting a 1.7% decline in LFL RevPAR from its franchises.
Looking ahead, EasyHotel’s interim chief executive Scott Christie said while the UK’s political and economic landscape was expected to impact consumer confidence, the company was “confident” that it will outperform the sector with its ‘super budget’ offering.
The company added that 2,0006 rooms are currently in the development pipeline, including an owner hotel investment pipeline of £40mln.
“With strong supportive shareholders behind us, the significant investments we have made in the business will ensure we have the resources to continue to expand and enhance the business and deliver the board’s ambitious strategy for targeted growth”, Christie said.