easyHotel Benelux

The Netherlands & Belgium

In May 2015 Crossroads provided a whole loan facility with equity warrants to easyHotel Benelux to refinance their existing indebtedness and help them finance pipeline acquisitions. 

 

Crossroads have since acquired a majority stake in the business and as the exclusive franchisee for easyHotel Benelux, Crossroads and the management team have successfully built out the platform, growing the portfolio to 9 hotels and 946 keys.

easyHotel Amsterdam Arena Boulevard -265

THE PLATFORM

 

  • Since 2005, easyHotel group has become one of the leaders in the budget hotel segment in Europe;

  • Its strategy is to target the lower rated segment of the hotel industry by developing and marketing clean, comfortable, stylish and safe hotel rooms to its customers;

  • The brand is recognised by customers for centrally located hotels that offer comfort and quality at affordable prices;

  • Xcentric Hotels BV is the exclusive master franchisee for the easyHotel brand in the Benelux region;

  • It currently operates 9 hotels (946 keys) in Amsterdam, The Hague, Rotterdam, Maastricht and Brussels; and

  • Highly professional, motivated management team with extensive experience across the budget hotel sector

STRATEGY
 

  • Successful business model of securing high occupancy levels (91% in 2019);

  • Affordable price points (€73 in 2019) producing > 50% profit margins across all hotels generated like-for-like RevPAR CAGE of 8% p.a between 2015 and 2019;

  • Attractive roll-out opportunity with c 10-15% unlevered yield on costs;

  • Well located CBD assets with very good transportation link; and

  • A highly scalable business model provides for an efficient take-over of distressed hotels and repositioning them into a high yield generating asset