London-listed easyHotel (AIM:EZH) has raised £11m in a share subscription to pursue the next stage of its owned hotel roll-out strategy.
The owner and operator of budget branded hotels said that it has raised the new capital of 11.6m new shares at 95.0 pence each by major shareholder Citrus Holdco, representing a 35.7% premium to its closing price of 70p on Thursday.
easyHotel said the funds will be used primarily to fund the group's owned hotel roll-out strategy following a February announcement which disclosed plans to develop a 230-room site in Madrid, Spain.
easyHotel's development pipeline of owned and franchised hotels currently consists of nine owned hotels and seven franchised hotels, the statement noted.
Shares in easyHotel were trading 14.29% higher at 80p during Friday trading.
The shares were issued to Citrus Holdco, a company owned by a consortium comprising real estate developer Cadim Fonds Inc and ICAMAP Investments Sarl, which in October 2019 acquired around 69% stake in easyHotel.
"Citrus Holdco Limited confirmed at the time of its Offer for easyHotel's shares last year that it was committed to supporting easyHotel to achieve the Board's strategic vision for the business more quickly and effectively,” said Harm Meijer, Non-executive Chairman of easyHotel.
“The proceeds from this proposed subscription will provide the business with the capital it needs to pursue the next stage of its owned hotel roll-out strategy,” he said.
"Our recently announced investment in Spain marks the latest step in our strategy to expand our owned hotel network across centrally located, high quality sites in major European cities,” added Scott Christie, Interim Chief Executive of easyHotel.
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