In what is being seen as yet another vote of confidence in the brand, easyHotel, the leading super-budget hotel operator, has taken a major step forward in its growth plans, with the signing of a second UK development deal. The company has signed an agreement with existing franchisee, Eclipse Hotel Group, which will see Eclipse invest up to £60 million, developing 10 easyHotels across the UK, over the next four years.
The deal with Eclipse, which already operates the easyHotel Luton franchise, puts easyHotel well on course for its target to have 200 hotels under franchise within ten years. In addition to the Luton hotel, which opened in April, Eclipse has started development of its second property, easyHotel Heathrow, which is planned to open in October.
Lawrence Alexander, CEO of easyHotel says, "Eclipse is delighted with the initial performance of easyHotel Luton and the signing of this development deal with them, demonstrates the belief and commitment they have in the easyHotel business model. Signing with easyHotel provides investors with the opportunity to leverage a hugely powerful brand as well as benefiting from a concept that delivers higher than average room densities, low build costs and greater operating margins."
Talking about the development plans, Sameer Damji, Managing Director of Eclipse Hotels Group says, "We firmly believe the easyHotel brand and super-budget model have significant growth potential in the UK. The success easyHotel has enjoyed over the past two years is testament to the rising demand for good quality, consistent, value for money hotel accommodation. We are delighted to be playing a major role in easyHotel's future development plans and are particularly excited about our next opening at Heathrow in October as well as future plans for our third site which we hope to open in Liverpool in early 2009."