Simple comfort 
Great value
easyHotel plc Annual report and accounts 2015
easyHotel plc Annual report and accounts 2015 easyHotel has an estate of 21 operational hotels comprising circa 
1,500 rooms at hotels operated by franchisees and 400 rooms owned 
and operated by easyHotel. Two new franchisee hotels opened in 
first half of 2015 (Frankfurt and Prague) with further hotels (Brussels 
and the Middle East) already set to open by the close of 2017.
About easyHotel
 Amsterdam
 Basel
 Berlin
 Budapest
 The Hague
 Dubai
 Edinburgh
 Glasgow 
(owned)
 Frankfurt
 London Old 
Street (owned)
 London Croydon 
(owned)
 London 
Earls Court
 London 
Heathrow
 London 
Paddington
 London South 
Kensington
 London Victoria
 London Luton
 Prague
 Rotterdam
 Sofia
 Zurich
 easyHotel owned
 easyHotel Franchise Governance Financial statements Strategic report
1 easyHotel plc Annual report and accounts 2015
Highlights of the year
Strategic report
IFC About easyHotel
1  Highlights of the year
2  Chairman’s statement
4	 Chief	Executive	Officer ’s	review
8 Business model and strategy
10	 Chief	F inancial	Officer ’s	review
12 Principal risks and uncertainties
Governance
13 Board of Directors
14 Chairman’s corporate governance report
15 Directors’ report
16 Audit Committee report
17 Remuneration report
20 Statement of responsibilities
Financial statements
21 Independent auditors’ report
22  Consolidated statement 
of comprehensive income
23	 	 Consolidated	statement	of	financial	position
24	 Consolidated	statement	of	cash	flows
25 Consolidated statement of changes in equity
26	 	 Company	statement	of	financial	position
27	 Company	statement	of	cash	flows
27 Company statement of changes in equity
28	 Notes	forming	part	of	the	financial	statements
IBC Directors, secretary and advisers
Financial highlights
Performance in line with Board expectations
Business highlights
• Appointment of new CEO and CFO with proven 
experience in building successful budget hotel chains.
• 21 easyHotels now operating in 14 cities in eight 
countries with 1,880 rooms (2014: 1,606).
• Owned hotel rooms increased by 103 in the year 
to 390 following the opening of Croydon.
• Acquisition of sites in Manchester (subject 
to completion) and Liverpool – both hotels are 
anticipated to open in 2016/2017 financial year.
Further information and investor updates 
can	be	found	on	our	website	at
http://ir.easyHotel.com
Post-year end developments
• Master Development Partnership signed with 
MAN Investments for the planned development 
of over 1,600 rooms in the UAE and Oman by 
end of 2020.
• Benelux franchisee secured planning consent 
and financing for a 107 room easyHotel Brussels 
– expected to be opened by early 2017. 
2014 2015
Total system sales*
£19.95m
£19.95m £17.33m
Profit before tax
£0.79m
2014 2015
£0.79m £0.57m
2014 2015
Cash generated from operations
£2.29m
£2.29m £1.11m
2014 2015
Basic earnings per share
1.0p
1.0p 1.2p
Proposed maiden final dividend
0.33p 
per share
*  Total system sales is the full amount 
that 	 the 	 c us tomer 	 pays 	 for 	 our 	 o wned	
and franchised hotels, including initial 
sign-on fees paid by franchisees to 
the Company. easyHotel plc Annual report and accounts 2015 2
Strategic report
Chairman’s statement
I am pleased to report that after a period 
of management transition, trading has been 
i n 	 li ne 	 with 	 B oa r d 	 ex p e c tati ons. 	 e as y H otel	
continues to expand the number of rooms 
available and extend its brand.
T h i s	l a s t	y e a r	s a w	i m p o r t a n t	c h a n g e s	
w i t h	t h e	a p p o i n t m e n t	o f	a	n e w ,	p r o v e n	
executive team including additional senior 
m a n a g e m e n t .	T h i s	t e a m ,	w h i c h	w i l l	o n l y	
be fully in place by February 2016, has 
extensive budget hotel experience, and is 
a l r e ady 	 bri ng i ng 	 new 	 foc us 	 t o 	 the 	 s tr ate gy	
w i t h	a	c l e a r	v i e w	o n	h o w	t o	a c c e l e r a t e	
t h e	g r o w t h	o f	b o t h	o u r	o w n e d	a n d	
f r a n c h i s e d	h o t e l	n e t w o r k .
“ Trading has been in line with Board 
expectations during a period of management 
change. We now have a real opportunity to 
improve the performance of our existing 
portfolio and to accelerate expansion.”
Jonathan Lane OBE
Non-Executive Chairman
Summary
• Trading in line with 
Board expectations 
• Number of rooms available 
increased and brand extended
• Appointment of new, proven 
executive team
• New focus to the strategy with 
actions taken to accelerate growth
Dividend
T he 	 B oa r d 	 i s 	 ple ase d 	 t o 	 confirm 	 that	
i t	i s	r e c o m m e n d i n g	a	m a i d e n	fi n a l	
dividend of 0.33p per ordinary share. 
If approved at the AGM to be held 
on 21 January 2016, the dividend 
wi l l 	 be 	 pay a ble 	 on 	 1 1 	 F ebrua r y 	 2 0 1 6	
to shareholders on the register on 
8 January 2016. Governance Financial statements Strategic report
Board changes
In January 2015, Darren Mee 
s tepped 	 do wn 	 as 	 C h ief 	 F i na nci a l 	 O f ficer 	
and, in July Simon Champion stepped 
d o w n	f r o m	h i s	r o l e	a s	C h i e f	E x e c u t i v e	
Of fi c e r . 	 Al s o 	 i n 	 Ju l y , 	 whe n 	 Ja n. 	 G . 	 Åst r a n d 	
s t e p p e d	d o w n	f r o m	t h e	B o a r d	a s	
E x e c u t i v e	C h a i r m a n ,	I	w a s	a p p o i n t e d	
as Non-Executive Chairman. The Board 
thanks Jan, Simon and Darren for having 
l e d	a	s u c c e s s f u l	fl o t a t i o n	i n	J u n e	2 0 1 4 .
S i n c e	A u g u s t	2 0 1 5 ,	t h e	B o a r d	n o w	
comprises 	 a n 	 e x ec ut i v e 	 t ea m 	 wi t h 	 e x t e n s i v e	
d i r e c t	k n o w l e d g e	a n d	s u c c e s s	i n	t h e	
budget hotel sector and is supported 
by	N o n - E x e c u t i v e s	w i t h	fi n a n ci a l ,	
hotel industry, property and public 
company experience.
3 easyHotel plc Annual report and accounts 2015
Marc Vieilledent started as 
C h i e f	F i n a n ci a l	O f fi c e r	i n	M a y	2 0 1 5	
fo l l o wi ng 	 1 6 	 y ea rs 	 at 	 Accor 	 S . A . , 	 wher e	
h e	w o r k e d	u n t i l	2 0 1 3 .
Guy Parsons joined as Chief Executive 
O f fi c e r	i n	A u g u s t	2 0 1 5 .	H e	h a s	o v e r	
25 years’ experience in the hotel and 
leisure industry, including eight years 
as 	 a 	 B oa r d 	 mem ber 	 at 	 T r av el odge 	 wher e	
he 	 w as 	 pr omo ted 	 t o 	 C EO 	 befor e 	 leavi ng	
in 2012.
My Non-Executive colleague Scott Christie 
a n d	I	l o o k	f o r w a r d	t o	s u p p o r t i n g	o u r	
n e w l y	a p p o i n t e d	E x e c u t i v e	D i r e c t o r s	
a n d	t h e i r	t e a m	i n	w h a t	I	e x p e c t	w i l l	b e	
a productive year.
Staff
O n	b e h a l f	o f	t h e	B o a r d ,	I	w o u l d	li k e	t o	
thank our employees for their dedication 
and contribution to the business during 
a year of considerable change.
Outlook
The outlook for the business is encouraging 
a n d	w e	n o w	h a v e	a	r e a l	o p p o r t u n i t y	t o	
improve the performance of our existing 
portfolio and to expand the business.
Jonathan Lane OBE
Non-Executive Chairman
Brand strength 
and international 
recognition
“easy”
Strong value 
proposition to 
customers
Network growth 
potential
Experienced 
management team 
and Board
Operational 
efficiency easyHotel plc Annual report and accounts 2015 4
Owned hotels
R e v e n u e	f r o m	o u r	o w n e d	h o t e l s	
benefited 	 fr om 	 a 	 fu l l 	 y ea r ’ s 	 contri buti on 	
f r o m	G l a s g o w ,	e x p a n d e d	c a p a ci t y	a t	
Old Street and the opening of Croydon 
in November 2014.
Despite increasing capacity at Old Street 
by 70 rooms in April 2014, revenue per 
av a i la ble 	 r oom 	 ( “ Re vP A R ” ) 	 for 	 Glasgo w	
a n d	O l d	S t r e e t	w a s	u p	1 0 %	t o	£ 3 0.	
As expected the operating performance 
at our Croydon hotel has been building 
since its opening in November 2014.
The decision on our application for 
retrospective planning permission, 
submitted to Islington Council for 
rooms already added to the Old Street 
h o t e l ,	i s	n o w	e x p e c t e d	i n	2 0 1 6 .
Franchise partners
Fol lo w i n g 	 t h e 	 o p e n i n g 	 of 	 t h e 	 1 3 2 	 r o o m	
Frankfurt easyHotel in January 2015 and 
an 83 room hotel in Prague in June 2015 
w e	n o w	h a v e	1 8	f r a n c h i s e d	h o t e l s	i n	o u r	
g r ou p . 	 The 	 r ecent 	 sec u ri ng , 	 with 	 ou r 	 i n iti a l	
a ss i st a nc e , 	 o f 	 p l a n n i ng 	 c o n s e n t 	 a nd 	 fi na nc e 	
for the Brussels hotel by our Benelux 
f r a nch i se e 	 wi l l 	 add 	 a 	 f ur ther 	 1 0 7 	 r ooms	
by early 2017.
Like for like revenue of franchised hotels 
i nc r ea sed 	 by 	 3 % 	 d u ri ng 	 the 	 fi na nci a l 	 y ea r .
easyHotel continued to perform in 
li ne 	 with 	 B oa r d 	 expec tati on s 	 i n 	 2 0 1 5 ,	
demonstrating the strength of the 
business model and demand for 
simple comfort at super budget 
prices in great locations.
F o l l o w i n g	m y	a p p o i n t m e n t	i n	A u g u s t	
I	r e v i e w e d	t h e	C o m p a n y ’ s	s t r a t e g y .	
A considerable market opportunity exists 
and the basis of our business model 
and strategy is sound. We have made 
key changes to our operations and 
m a n a g e m e n t	s t r u c t u r e	a n d	w e	h a v e	
t h e	o p p o r t u n i t y	t o	i n c r e a s e	s i g n i fi c a n t l y	
t h e	p a c e	a t	w h i c h	w e	o p e n	h o t e l s	a n d	
fi r m l y	e s t a b li s h	o u r s e l v e s	a s	t h e	l e a d i n g	
branded super budget hotel operator. 
W e	a l s o	c o n d u c t e d	a	t h o r o u g h	r e v i e w	
of the UK and European hotel markets, 
wh i c h 	 h a s 	 he l ped 	 u s 	 t o 	 i d e n t i f y 	 a 	 n u m be r	
o f	t o w n s	a n d	c i t i e s	w h e r e	w e	w i s h	t o	
h a v e	o w n e d	o r	f r a n c h i s e d	e a s y H o t e l s .
Trading review
We have made good progress 
with 	 ou r 	 o wned 	 a nd 	 fr a nch i sed 	 ho tel	
n e t w o r k ,	w i t h	r e v e n u e	f o r	t h e	y e a r	
ended 30 September 2015 ahead 
of the previous year. 
Occupancy for all hotels, excluding 
2 0 1 4 / 2 0 1 5	o p e n i n g s ,	w a s	7 6 . 4 % .
Summary
• A considerable market 
opportunity exists
• Operational improvements 
introduced to drive efficiency, 
scalability and pace of expansion
• Scale of opportunity in the 
UK and Europe larger than 
previously thought
• Master Development Partnership 
signed in the Middle East
Strategic report
Chief Executive Officer’s review
“ easyHotel continues to be the most recognised 
branded super budget hotel chain and there is 
excellent potential for us to assert ourselves in 
this important niche market.”
Guy Parsons
Chief Executive Officer Governance Financial statements Strategic report
I n	N o v e m b e r	2 0 1 5	w e	a n n o u n c e d	a	
M as ter 	 D e v elopment 	 P a r tnersh i p 	 with	
MAN Investments LLC for the development 
o f 	 n e w 	 p u r p o s e- b u i l t 	 a ss e ts 	 a n d 	 c o n v e r s i o n s	
in the UAE and Oman. This should 
establish us as the largest super budget 
hotel chain in the region and greatly 
i m p r o v e	b r a n d	a w a r e n e s s .
Development of owned hotels
We purchased 47 Castle Street in Liverpool 
i n 	 Ap r i l 	 2 0 1 5 	 a n d 	 w e 	 c o n d i t i o n a l l y 	 a c q u i r ed	
B r a d l e y	H o u s e	i n	M a n c h e s t e r ,	w h i c h	i s	
still subject to completion, in June 2015.
Both sites have been selected for 
thei r 	 ex cel lent 	 l ocati on s 	 a nd 	 a r e 	 with i n	
w a l k i n g	d i s t a n c e	o f	l o c a l	a t t r a c t i o n s ,	
tourist destinations and transport hubs. 
These hotels are expected to open in the 
2 0 1 6 / 2 0 1 7 	 fina ncia l 	 ye a r 	 a nd 	 w ou ld 	 add	
77 and 116 rooms respectively.
W e	a r e	a c t i v e l y	r e v i e w i n g	a n d	
considering more development 
opportunities than has historically 
been the case.
Strategy review
F o l l o w i n g	m y	a p p o i n t m e n t	a s	
C h i ef 	 E x ec ut iv e 	 Of ficer 	 i n 	 Aug u st 	 2 0 1 5 , 	
I	u n d e r t o o k	a	r e v i e w	o f	t h e	b u s i n e s s ,	
i t s	o p e r a t i o n a l	c a p a b i li t y	a s	w e l l	a s	
the market opportunity for easyHotel. 
T h e	c o n c l u s i o n s	o f	t h i s	r e v i e w	a r e	
s e t	o u t	b e l o w :
Market opportunity
easyHotel continues to be the most 
recognised branded super budget hotel 
chain and there is excellent potential for 
us to assert ourselves in this important 
niche market.
I n d e p e n d e n t	m a r k e t	d a t a *	s h o w s	t h a t	
branded budget hotels in the UK are 
e x p e c t e d	t o	g r o w	f r o m	1 3 7 , 0 0 0	r o o m s	
at the end of 2014 to 180,000 rooms by 
the end of 2020, and to 215,000 by the 
end of 2030. This represents a consistent 
3 % 	 a n n ua l 	 i nc r ea se 	 o v er 	 the 	 ne x t 	 1 5 	 y ea rs ,	
w i t h	a	s i m i l a r	l o n g - t e r m	t r e n d	e x p e c t e d	
t o	m a t e r i a li s e	w i t h i n	t h e	r e s t	o f	E u r o p e .	
Furthermore, established budget hotel 
chains are gradually increasing their 
room rates leaving a gap in the market 
for a truly budget offering.
* Melvin Gold Consulting Ltd 2015.
Owned hotels
The 	 o wned 	 ho tel 	 s tr ategy 	 i s 	 sou nd , 	 a l beit	
t h e r e	i s	m o r e	w e	c a n	d o	t o	c a p i t a li s e	o n	
market opportunities available. We have 
i d e n t i fi e d	t h e	p o t e n t i a l	f o r	1 2 , 0 0 0	o w n e d	
e a s y H o t e l	r o o m s ,	t w o	t h i r d s	o f	w h i c h	a r e	
in over 30 cities and Greater London in the 
U K ,	t h e	r e m a i n d e r	b e i n g	i n	k e y	g a t e w a y	
European cities. This analysis is based on 
kn o w n 	 d e m a n d 	 f o r 	 g o o d 	 q u a li t y , 	 a f f o r d a b l e	
h o t e l	r o o m s .	T h e	B o a r d	i s	c o n fi d e n t ,	t h a t	
w i t h 	 a d eq u a t e 	 r es o u rc es , 	 w e 	 s h o u l d 	 be 	 a b l e	
t o 	 deliv er 	 sig n ifica nt 	 g r o w th 	 i n 	 the 	 com i ng	
years. The focus is primarily on acquiring 
c o n v e r s i o n	 a n d	 n e w	 b u il d 	 s i t e s	 t h a t 	 a r e 	 i n	
close proximity to good transport links as 
w e l l	a s	f o o d	a n d	b e v e r a g e	f a ci li t i e s .
Since August, several interesting sites have 
b e e n	i d e n t i fi e d	w h i c h	w e	a r e	c u r r e n t l y	
evaluating and negotiating. From early 
2 0 1 6	o u r	d e v e l o p m e n t	a c t i v i t i e s	w i l l	b e	
led 	 by 	 a 	 ne wly 	 a p po i n t ed 	 UK 	 De v el o p men t	
D i r e c t o r	w h o	h a s	a	p r o v e n	t r a c k	r e c o r d	
in developing budget hotel chains 
including many years at a major 
UK hotel company.
The 	 B oa r d 	 has 	 conc l uded 	 that 	 wh i l s t	
it intends to accelerate the overall 
development plan, it is prudent to 
a s s u m e	t h a t	i t	w i l l	t a k e ,	o n	a v e r a g e ,	
t w o	y e a r s	t o	i d e n t i f y ,	p u rc h a s e	a n d	
convert sites before opening.
I n	t e r m s	o f	e v a l u a t i n g	n e w	s i t e	
oppor tu n ities , 	 the 	 B oa r d 	 wi l l 	 conti n ue 	 t o	
assess sites on the basis of their potential 
unlevered return on capital employed 
( “ ROC E” ) . 	 Th i s 	 wi l l 	 i nc l ude 	 de v el opment	
opportunities in key metropolitan cities 
w h i c h	o f f e r	s u p e r i o r	r i s k	a d j u s t e d	r e t u r n s	
in the longer term, albeit returns may be 
l o w er 	 tha n 	 the 	 Co m pa n y’ s 	 p r e vi o u s 	 t a r get	
o f 	 1 5 % 	 ROC E 	 at 	 matu rit y 	 o wi ng 	 t o 	 h i g her	
land prices in certain locations.
Operating leverage model
There is an early opportunity to update 
the 	 w ay 	 i n 	 wh i c h 	 w e 	 d o 	 bu s i ness . 	 Wi th 	 the	
appointment in November 2015 of an 
O p e r a t i o n s	D i r e c t o r ,	w i t h	1 8	y e a r s ’	h o t e l	
industry experience, our core operational 
d i sci p li nes 	 wi l l 	 be 	 de v el o ped 	 t o 	 ma k e 	 them	
m o r e 	 c u st o m e r 	 f o c u s ed 	 a n d 	 m o r e 	 e f fi ci e n t . 	
A s	a	r e s u l t ,	o u r	b u s i n e s s	w i l l	b e	m o r e	
scalable, making it easier to apply and roll 
out 	 i n 	 new 	 l ocati on s. 	 W e 	 a r e 	 confident 	that	
t h e	c h a n g e s	t o	t h e	o p e r a t i n g	m o d e l	w i l l	
continue to achieve high margins through 
lo w 	 op er ati ng 	 cos t s , 	 h ig h 	 occ up a nc y 	 r ate s	
a n d	t h e	b u s i n e s s	w i l l	g e n e r a t e	h i g h e r	
r e t u r n s	a s	w e	h a v e	m o r e	r o o m s	p e r	
square footage than our competitors.
easyHotel plc Annual report and accounts 2015 5 Strategic report
Chief Executive Officer’s review (continued)
Strategy review (continued)
Operating leverage model (continued)
W e 	 sha l l 	 i ntr od uce 	 a 	 new 	 ho tel 	 des i g n ,	
to both bedroom and public areas, 
w h i c h	w i l l	b e	r o l l e d	o u t	i n	o u r	f u t u r e	
h o t e l	o p e n i n g s .	T h e	n e w	l o o k	i s	f r e s h e r	
and more contemporary, and has been 
des i g ned 	 with 	 the 	 need s 	 o f 	 ou r 	 c u s t omers	
i n 	 m i nd . 	 Impor ta ntly , 	 wh i ls t 	 the 	 cos t 	 o f 	 fi t	
o u t	o f	t h e	n e w	r o o m s	i s	e x p e c t e d	t o	b e	
marginally higher than historically, they 
h av e 	 bee n 	 d es i g n ed 	 t o 	 r ed u c e 	 s i g n i fi c a n t l y 	
day-to-day maintenance costs, ensuring 
that our hotels retain a fresh look.
Franchised hotels
We believe the opportunity for franchised 
hotels in the UK and Europe is comparable 
t o 	 t he 	 o wned 	 h o t e l 	 o p po r tu n i t y . 	 Ou r 	 m a rk et	
r e v i e w s	h a v e	i d e n t i fi e d	t h e	o p p o r t u n i t y	t o	
open a further 15,000 franchised easyHotel 
rooms in the UK and Europe, in locations 
w h e r e	w e	d o	n o t	i n t e n d	t o	e s t a b li s h	a n	
o w n e d	h o t e l	i n	t h e	f o r e s e e a b l e	f u t u r e ,	o r	
w h e r e 	 t h e r e 	 i s 	 s u f fi ci e n t 	 d e m a n d 	 f o r 	 s m a l l e r 	
h o t e l s	t o	o p e r a t e	a l o n g s i d e	o u r	o w n e d	
sites. Our dedicated Franchise Director 
w i l l	f o c u s	o n	d e v e l o p i n g	t h e	f r a n c h i s e e	
hotel pipeline in the UK and Europe.
Our current 18 franchised hotels 
materia l ly 	 ou t -numb er 	 our 	 o wne d 	 hotels	
and have been developed by successful 
e n t r e p r e n e u r s .	I n	f u t u r e	w e	s h a l l	w o r k	
m o r e	c l o s e l y	w i t h	o u r	e x i s t i n g	a n d	n e w	
franchisees to help them further build 
s u c c e s s f u l	b u s i n e s s e s	a s	w e l l	a s	e x t e n d	
the easyHotel estate.
Outside Europe, our focus in the 
me d i um 	 term 	 wi l l 	 b e 	 i n 	 the 	 M idd le 	 E as t	
wher e 	 w e 	 hav e 	 r ecently 	 s i g ned 	 a 	 M as ter	
D e v e l o p m e n t	P a r t n e r s h i p	w i t h	
MAN Investments LLC. MAN Investments’ 
development programme targets an 
initial opening of 600 rooms by 2017, 
for 	 wh i ch 	 it 	 has 	 a l r eady 	 sec u r ed 	 the 	 s ites	
t o	a c c o m m o d a t e	t h i s	t a r g e t .	F o l l o w i n g	
these openings, MAN Investments are 
targeting a further 1,000 rooms by the 
end of 2020.
Brand
The Board believes the easyHotel brand is 
v e r y	p o w e r f u l	b u t	r e m a i n s	u n d e r i n v e s t e d	
and underexploited.
W e 	 k no w 	 that 	 c us t omer 	 r e commendati on	
plays an integral part in our future success 
a n d	fi n d i n g	o u t	w h a t	o u r	c u s t o m e r s	t h i n k	
is central to our business. We have started 
mon it ori ng 	 socia l 	 me d ia 	 a nd 	 r e view 	 site s ,	
i n c l u d i n g	T r i p A d v i s o r ,	a s	w e l l	a s	a s k i n g	
e v e r y o n e	w h o	b o o k s	w i t h	u s	w h e t h e r	
t h e y	w o u l d	r e c o m m e n d	u s	t o	t h e i r	
friends, family or colleagues.
Wi t h 	 o v e r 	 9 7 % 	 o f 	 boo ki n g s 	 i n 	 t he 	 UK 	 m a d e	
d i r e c t l y	v i a	o u r	w e b s i t e ,	e a s y H o t e l . c o m ,	
constantly improving our customer 
experience 	 a nd 	 en su ri ng 	 that 	 ou r 	 w ebs ite	
i s	e a s y	t o	fi n d ,	u s e	a n d	n a v i g a t e	i s	a n	
o n g o i n g 	 p r i o r i t y . 	 F o l l o w i n g 	 t h e 	 a p p o i n t m e n t	
of a Head of Marketing in March 2015, 
our search engine optimisation (SEO) 
and pay per click (PPC) campaigns have 
b e e n	r e fi n e d	t o	m a x i m i s e	t h e	t r a f fi c	
t o 	 our 	 website 	 a nd 	 i mpr o v e 	 the 	 r eturn	
on investment.
Distribution & 
Revenue Management
A 	 h is to r ic 	 f e a t ur e 	 of 	 o ur 	 o w n e d 	 h ot e l	
d is t r i b u t io n 	 s t r a t e g y 	 wa s 	 to 	 s e l l 	 r o o m s	
directly through easyHotel.com only. 
H o w e v e r ,	a n d	p a r t i c u l a r l y	i n	E u r o p e ,	a	
number of our franchisees have successfully 
started using online travel agencies. 
W e	a r e	c u r r e n t l y	r e v i e w i n g	t h i s	a n d	a r e	
e va l uat i ng 	 the 	 benefit 	 o f 	 r elea s i ng 	 a 	 sma l l 	
p r o po r t i o n 	 o f 	 o wned 	 r oo m s 	 t o 	 o n li ne 	 t r av e l	
agencies. We believe that the cost of using 
a g e n t s	w i l l	b e	m o r e	t h a n	c o m p e n s a t e d	
by 	 h ig her 	 Re v P A R 	 a nd 	 pr ofi ta bi lit y , 	 as 	 wel l	
a s 	 i n c r ea s ed 	 b r a n d 	 aw a r e n ess . 	 Th i s 	 st r a t eg y	
w i l l 	 be 	 k e p t 	 u n d e r 	 r e v i e w 	 a s 	 w e 	 t est 	 t h e 	 r i g h t	
ba la nce 	 bet w een 	 d i r ec t 	 a nd 	 agenc y 	 sa les.
Central operations
As the business evolves, it is imperative 
t h a t	w e	h a v e	t h e	t e c h n o l o g y	i n	p l a c e	t o	
a l l o w	f o r	o n g o i n g	g r o w t h.	O n e	o f	t h e s e	
core areas is our IT infrastructure. Having 
l a u n c h e d	a	n e w	w e b s i t e	i n	s u m m e r	2 0 1 5	
w e 	 hav e 	 m o v ed 	 o n t o 	 a 	 ne w , 	 m o r e 	 ef fici en t , 	
sca l a b le 	 a nd 	 sec u r e 	 ser v er 	 wh i c h 	 ma nages	
both front end bookings and sales and 
b a c k	e n d	fi n a n ci a l	a c c o u n t i n g .	W e	a r e	
revising our supplier contracts and have 
r e d u c e d	t h e	n u m b e r	o f	s u p p li e r s	w e	u s e	
t o 	 benefit 	 fr om 	 the 	 co s t 	 savi ng s 	 that 	 sca le 	
can bring.
We have recently decided to insource 
our human resources to help facilitate 
o u r	g r o w t h	a n d	i m p r o v e	o u r	e f fi ci e n c y .	
6 easyHotel plc Annual report and accounts 2015 
easyHotel online customers’ top 15 countries of residence
 35% United Kingdom
 18% Netherlands
 12% Germany
 8% United Arab Emirates
 4% Spain
 3% Switzerland
 3% Italy
 2% Bulgaria
 2% France
 2% Hungary
 0.9% United States
 0.7% Brazil
 0.6% Portugal
 0.6% Ireland
 0.4% Sweden
0.4%
35%
18%
12%
8%
0.6%
0.6%
0.7%
0.9%
2%
2%
2%
3%
3%
4% Governance Financial statements Strategic report
easyHotel Frankfurt,  
132 bedroom hotel 
centrally located right  
in the heart of the city
easyHotel customers’ reason for staying
 50% Leisure
 44% Business
  6% Family/friends
44%
50%
6%
Our staff recruitment process has been 
s i m p li fi e d	a n d	c o n t r a c t s	o f	e m p l o y m e n t	
have been standardised. At the year-end 
t h e	G r o u p	e m p l o y e d	3 0	s t a f f	( 2 0 1 4 :	 1 4 ) .
Outlook
Trading for the current year has started 
w el l 	 a nd 	 i n 	 li ne 	 with 	 B oa r d 	 expec tati on s.	
W e 	 a r e 	 a l r ea d y 	 d r i v i n g 	 e f fi ci e n ci es 	 t h r o u g h 	
the business and taking measures to 
i m p r o v e 	 Re vP AR 	 a nd 	 h o t el 	 p r ofit a b i li t y . 	
W e	w i l l	b e n e fi t	f r o m	t h e	r e c e n t	
strengthening of our team.
The 	 fi rst 	 o f 	 the 	 ne w 	 o wned 	 h o t el 	 o pen i ng s 	
a r e 	 p l a n ned 	 f o r 	 the 	 2 0 1 6 / 2 0 1 7 	 fi na nci a l 	
ye a r 	 af ter 	 wh ich 	 we 	 i ntend 	 t o 	 acceler ate	
t h e	g r o w t h	o f	o u r	o w n e d	a n d	f r a n c h i s e	
n e t w o r k 	 i n 	 t h e 	 UK 	 a n d 	 E u r o pe 	 a n d 	 o pe r a t e	
an 	 e a s y H ot e l 	 w h e r ev e r 	 t h e r e 	 is 	 d e m an d	
for branded good quality, affordable 
rooms. Our strategy, therefore, extends 
b eyo n d 	 g a t e wa y 	 ci t i e s 	 an d 	 d e s t i n a t io ns	
wher e 	 the 	 “ ea sy ” 	 b r a nd 	 a l r eady 	 o per at es .
Guy Parsons
C h i e f	E x e c u t i v e	O f fi c e r
easyHotel plc Annual report and accounts 2015 7
easyHotel’s age of website visitors
 40% Age: 25–34
 19% Age: 18–24
 19% Age: 35–44
 13% Age: 45–54
 7% Age: 55–64
 4% Age: 65+
40%
19%
19%
13%
4%
7%
Business model and strategy 
on pages 8–9   easyHotel plc Annual report and accounts 2015 8
Strategic report
Business model and strategy
Owned
Locations:
Over 30 locations in the UK 
a n d	g a t e w a y	E u r o p e a n	ci t i e s
Motive:
• 	 C o m p a n y	g r o w t h
• Strong value creation
•  Supported by our direct 
distribution model
Leverage “easy” brand
easyHotel’s core strength is our 
ability to leverage the recognised 
and trusted “easy” brand and further 
reinforce its recognition. By offering 
customers a good product at an 
a f f o r d a b l e	r a t e ,	w e	c o n t i n u a l l y	
a t t r a c t	n e w	c u s t o m e r s	a n d	d r i v e	
s i g n i fi c a n t	r e p e a t	b u s i n e s s .
Franchised
Locations:
Locations in the UK and Europe 
wher e 	 we 	 don ’ t 	 a ntici p ate 	 ha vi ng	
o w n ed 	 h o t e l s 	 i n 	 t h e 	 f o r es eea b l e 	 fut u r e
Motive:
• E x p a n s i o n	o f	b r a n d	n e t w o r k
•  Achieve high margins from 
l o w	i n v e s t m e n t
2 1
Hotel approach
easyHotel’s uniform approach to 
m a n a g i n g	b o t h	o u r	o w n e d	a n d	
fr a nch i sed 	 ho tel s 	 en su r es 	 w e 	 liv e 	 u p	
to our “cost-conscious philosophy” 
w h i l s t	p r o v i d i n g	c u s t o m e r s	w i t h	a	
consistently high quality product 
a t	a	l o w	r a t e .
• Use of all available space
• Consistent good quality product
• L o w	r o o m	r a t e s
• High occupancy
• High operating margins
Central operations
People management
Ou r 	 foc u s 	 on 	 H R 	 en su r es 	 that 	 people 	 w ork 	 pr od uc tiv ely 	 t o 	 thei r 	 po tenti a l 	 a nd 	 that	
w e	c o n t i n u e	t o	a t t r a c t	a n d	r e t a i n	l e a d i n g	t a l e n t .
Marketing
Our marketing strategy focuses on driving sales online. We track customer 
feedback and social media to improve our operational performance.
Operational expertise
O u r	m a n a g e m e n t	e x p e r t i s e	c o n fi r m s	t h a t	w e	h a v e	a n	e f f e c t i v e	p i p e li n e	o f	n e w	
hotels in place and that management continues to be rigorous in controlling costs 
a nd 	 ma i nta i n i ng 	 op er ati ng 	 cos t 	 fl exi bi lit y . 	 Up date s 	 t o 	 our 	 centr a l 	 I T 	 s y s tems 	 i n 	 the	
past year have further facilitated our operational expertise.
Governance
Our experienced Board and the Group’s commitment to a high standard 
of corporate governance are crucial in our ability to ensure long-term and 
sustainable success.
4
3
1 
Leverage  
“easy”  
brand
4 
Central 
operations
5 
Value  
creation
2 
Owned 
3 
Franchised
Hotel 
approach Governance Financial statements Strategic report
9 easyHotel plc Annual report and accounts 2015
Value creation
Employees
• 	 P e r s o n a l	g r o w t h	a n d	
development opportunities 
w i t h i n	t h e	g r o u p
Customers
•  Consistently good quality product 
i n	g o o d	l o c a t i o n s	a t	l o w	r a t e s
Shareholders
•  Long-term investment opportunity 
w i t h	i n c r e a s i n g	r e t u r n s
• 	 H i g h ,	g r o w i n g	c a s h	g e n e r a t i o n
• Regular dividends
easyHotel
• Brand strength reinforcement
• G r o w t h	o f	b r a n d	n e t w o r k
•  Leadership in the “super budget” 
hotel market
• E B I T D A	g r o w t h	a n d	h i g h	R O C E
5
easyHotel strategy
T h e	B o a r d	h a s	c o n fi r m e d	t h a t	t h e	c u r r e n t	s t r a t e g y	c o n t i n u e s	t o	b e	t h e	b e s t	w a y	
t o 	 ach ie v e 	 the 	 G r oup ’ s 	 g r o w th 	 ta r get s. 	 T he 	 pla n 	 i s 	 t o 	 acceler ate 	 de v elopment 	 a nd	
g r o w 	 the 	 e as y H otel 	 busi ne s s 	 by 	 foc usi ng 	 on 	 ex p a nd i ng 	 our 	 o wne d 	 a nd 	 f r a nch i se	
n e t w o r k s	w h i l s t	c o n t i n u i n g	t o	e n s u r e	o u r	c o n s i s t e n t	h o t e l	a p p r o a c h	i s	d e li v e r e d	
by	m a i n t a i n i n g	o p e r a t i o n a l	e f fi ci e n c y .
Accelerate rollout of further owned hotels in UK and Europe
Description
Taking into account the size 
of the market, competition, 
p r i c e	p r o fi l e	a n d	c u s t o m e r	
b r a n d 	 r ec og n i t i o n , 	 w e 	 be li e v e	
t h a t	t h e r e	i s	s i g n i fi c a n t	
potential for the rollout of 
m u lti ple 	 o wned 	 ho tel s 	 i n 	 the	
UK and Europe, meeting 
minimum return on capital 
employed targets.
Activities
• 	 A v e r a g e	h o t e l	s i z e	b e t w e e n	
100–150 rooms.
•  UK focus on Greater 
London area, major cities 
a n d	l a r g e r	r e g i o n a l	t o w n s .
•  Europe focus on key 
g a t e wa y	ci t i e s.
Performance
• Number of hotels
• ROCE
Performance
• Operating margin
•  A v e r a g e d a i ly 
rate (ADR)
• Occupancy
•  Re v e n u e 
per available 
room (RevPAR)
•  N e t 
Promoter Score
Description
W e	w i l l	d r i v e	e f fi ci e n c y	v i a	
a lean business model and 
by taking advantage of the 
benefits 	 that 	 sca le 	 ca n 	 b ri ng , 	
so 	 that 	 w e 	 ca n 	 o f fer 	 the 	 bes t	
branded room rates to our 
g u e s t s .	W e	w i l l	d e li v e r	a	
consistent product and service 
a c r o s s	o u r	o w n e d	a n d	
fr a nch i se 	 net w ork. 	 W e 	 uti li se	
online booking systems 
to support our revenue 
management strategy 
and drive occupancy.
Drive operational efficiency
Activities
•  High number of rooms 
per sq. ft.
• 	 R u n	h o t e l s	w i t h	l o w	
staff numbers and 
l o w	fi x e d	c o s t s
• 	 C r e a t e	a n	e f fi ci e n t	
and scalable central 
operations team
•  Im p l em en t r e v en u e 
management strategy of 
advanced customer bookings
Rapidly expand franchise network partnerships in the UK, 
Europe and Middle East
Description
The franchise operations 
remain an important part 
of the strategy in locations 
w h e r e 	 we 	 d o 	 n ot 	 i n t e n d	
to 	 h a v e 	 an 	 o w n e d 	 h ot e l .	
T h e r e 	 is 	 mu t u a l 	 b e n e fi t 	 to	
the Company and franchisees 
from an increase in scale 
an d 	 b r an d 	 p r o fil e 	 of 	 t h e	
h ot e l 	 ne t work.
Activities
•  UK and Europe – in locations 
wh e r e 	 w e 	 d o n ’ t 	 i n t e n d 	 t o 	 h av e	
a n 	 o w n ed 	 h o t e l
•  Middle East – build franchise 
largely though major 
development partnerships
Performance
• Number of hotels
•  F r a n c h i s e e 
Revenues easyHotel plc Annual report and accounts 2015 10
Summary
• Revenue from owned hotels 
up 76% to £4.03m
• Total system sales up 15% 
to £19.95m
• £22.64m of cash reserves 
available to fund accelerated 
owned hotel expansion
• Proposed maiden final 
dividend of 0.33p per share
B o t h	o u r	o w n e d	a n d	f r a n c h i s e d	h o t e l s	
p e r f o r m e d	w e l l	d u r i n g	t h e	fi n a n ci a l	y e a r	
wi t h 	 k e y 	 pe r f o rm a n c e 	 met r i cs 	 – 	 oc c u pa n cy ,	
average daily rate (ADR) and revenue per 
a va i l a b l e	r o o m	( R e v P A R )	–	i n	li n e	w i t h	
Board expectations. Total system sales 
– the full amount that the customer pays 
f o r	o u r	o w n e d	a n d	f r a n c h i s e d	h o t e l s ,	
including initial sign-on fees paid by 
f r a n c h i s e e s	t o	t h e	C o m p a n y	–	w a s	u p	
1 5 %	t o	£ 1 9 . 9 5 m	( 2 0 1 4 :	£ 1 7 . 3 3 m ) .
Revenue
T o t a l	r e v e n u e	i n c r e a s e d	by	5 6 %	
t o	£ 5 . 5 4 m	( 2 0 1 4 :	£ 3 . 5 4 m ) .
Re v en ue 	 fr om 	 o wned 	 ho tel s 	 w as 	 u p 	 by	
7 6 % 	 t o 	 £4 .03 m 	 ( 2 0 1 4 : 	 £2 .30 m ) 	 r eflec ti ng 	
a 	 fu l l 	 y ea r’ s 	 c o n t ri but i o n 	 fr o m 	 the 	 Gl a sg o w	
hotel, the opening of the Croydon hotel 
in November 2014 and the 70 rooms 
added to the Old Street hotel in April 2014.
Franchised hotel revenue, including a 
one-off fee of £0.27m relating to the 
termination of a South African franchisee 
ag r e ement , 	 w as 	 £ 1 . 5 1 m 	 ( 2 0 1 4 : 	 £ 1 . 2 5m ) .	
Adjusted EBITDA
Adjusted EBITDA (before one-off items) 
w as 	 £ 1 .4 6m 	 ( 2 0 1 4 : 	 £ 1 . 7 3 m ) . 	 Ou r 	 o wned	
and franchised segments contributed 
a	p r o fi t	i m p r o v e m e n t	o f	£ 0. 5 1 m	b e i n g	
more than offset by additional expenses 
of £0.30m (primarily, recurring fees 
incurred from being a listed company) 
a s	w e l l	a s	c e n t r a l	s t a f f	c o s t s	i n c r e a s i n g	
by 	 £0.4 8m 	 as 	 w e 	 i n v es t 	 beh i nd 	 the 	 futu r e	
g r o w t h	o f	t h e	b u s i n e s s .
Strategic report
Chief Financial Officer’s review
“ Both our owned and franchised hotels 
performed well with key performance 
metrics, occupancy, average daily rate 
and revenue per available room, in line 
with Board expectations.”
Marc Vieilledent
Chief Financial Officer
Profit before tax
P r o fi t	b e f o r e	t a x	w a s	£ 0. 7 9 m	
( 2 0 1 4 :	£ 0. 5 7 m )	w i t h	p r o fi t	b e f o r e	
tax from segment operations up 
3 4 %	t o	£ 2 . 6 4 m	( 2 0 1 4 :	£ 1 . 9 8 m ) .
O w n e d	h o t e l s ’	p r o fi t	b e f o r e	t a x	w a s	
£ 1 . 7 6 m	( 2 0 1 4 :	£ 0. 9 6 m )	d r i v e n	by	t h e	
st r o n g 	 pe r f o rm a n c e 	 o f 	 bo t h 	 t he 	 Gl a s g o w	
a n d	O l d	S t r e e t	h o t e l s	a s	w e l l	a s	t h e	
p r o fi t a b l e	o p e n i n g	o f	t h e	C r o y d o n	
hotel in November 2014.
F r a n c h i s e d	h o t e l s ’	p r o fi t	b e f o r e	t a x	
w a s 	 £0.88m 	 ( 2 0 1 4 : 	 £ 1 .0 2 m ) . 	 The 	 Dut c h ,	
German and London airport hotels 
per f o rmed 	 pa r t i c u l a rly 	 w el l , 	 h o w e v er 	 th i s	
w a s	o f f s e t	by	a d d i t i o n a l	i n v e s t m e n t	i n t o	
the franchised business, in particular 
the appointment of a Franchise Director 
in October 2014 and an increase in 
marketing spend.
The change in the executive team 
during the year led to a number of 
one-off recruitment and legal fees as 
w e l l	a s	t e r m i n a t i o n	p a y m e n t s	b e i n g	
incurred for a total amount of £0.35m.
Hotel pre-opening and development 
costs incurred in relation to securing and 
subsequent development of the Liverpool 
and Manchester hotels amounted to 
£0.03m. As our number of hotel openings 
accelerates, pre-opening costs are 
expected to increase.
F i n a n c e	i n c o m e	w a s	£ 0. 1 9 m	
( 2 0 1 4 :	£ 0.0 2 m ) ,	w i t h	£ 0.0 6 m	r e l a t i n g	
to interest on cash deposits, and £0.13m 
relating to interest on amounts advanced 
to our Benelux franchisee (see opposite).
RevPAR up 10% at 
easyHotel Glasgow and 
Old Street owned hotels Governance Financial statements Strategic report
11 easyHotel plc Annual report and accounts 2015
F i n a n c e	e x p e n s e	w a s	£ 0. 3 3 m	
( 2 0 1 4 :	£ 0. 1 3 m ) .	T h i s	i n c l u d e d	a	f o r e i g n	
excha nge 	 los s 	 o f 	 £ 0. 1 5m 	 ( 2 0 1 4 : 	 £ 0.06m )	
duri ng 	 a 	 ye a r 	 i n 	 wh ich 	 we 	 wer e 	 adv ersely	
impacted by the strengthening of the 
UK pound against the Euro.
Benelux franchisee
As announced in October 2015, the 
Group’s Benelux franchisee secured 
p l a n n i n g	c o n s e n t	a n d	fi n a n ci n g	f o r	a	
proposed 107 room easyHotel Brussels 
project and, as a consequence, the Group 
has received repayment of its €3.3m 
security deposit and has been entirely 
released from any future step-in obligation 
related to the project. The Group had 
also entered into an agreement to lend 
the franchisee €0.85m in relation to the 
B r us sels 	 pr o je c t . 	 T h i s 	 a mount 	 w as 	 r ep a id	
i n	f u l l	d u r i n g	t h e	fi n a n ci a l	y e a r .	I n t e r e s t	
received on these agreements of £0.13m 
w a s	o f f s e t	by	a	f o r e i g n	e x c h a n g e	l o s s	o f	
£0.15m relating to the monies advanced.
National Living Wage
The introduction of the National Living 
W age 	 fr om 	 A pri l 	 2 0 1 6 	 wi l l 	 hav e 	 a 	 second	
half impact of circa £0.04m on our staff 
costs for 2015/2016. The scheduled 
long-term increases in the National Living 
Wage are expected to be offset by our 
r e v e n u e 	 st r a t eg y 	 a n d 	 i n c r e m e n t a l 	 e f fi ci e n cy 	
i m p r o v e m e n t s	t o	t h e	o p e r a t i o n s ,	w h i l e	
central overheads should gradually 
r e p r e s e n t	a	l o w e r	p r o p o r t i o n	o f	
o p e r a t i n g	s e g m e n t	p r o fi t s .
Cash flows and balance sheet
C a s h 	 g e n e r a t e d 	 f r o m 	 o p e r a t io ns 	 wa s	
£ 2 . 2 9 m 	 ( 20 1 4 : 	 £ 1 . 1 1 m ) 	 w i t h 	 a 	 tot a l 	 n e t	
us e 	 of 	 c a s h 	 of 	 £ 1 .6 3m 	 a f t e r 	 n e t 	 fin an cia l	
expenses, corporation tax paid, investments 
and share purchases.
£ 1 .0 m	h a s	b e e n	s p e n t	t h i s	fi n a n ci a l	y e a r	
by	t h e	E m p l o y e e	B e n e fi t	T r u s t	o n	s h a r e	
purchases. As at 30 September 2015 
1,125,000 shares are held by the 
E m p l o y e e	B e n e fi t	T r u s t	( 2 0 1 4 :	 1 1 2 , 5 0 0 ) .
T h e	G r o u p	e n d e d	t h e	fi n a n ci a l	y e a r	w i t h	
n e t	a s s e t s	o f	£ 3 2 . 4 4 m	( 2 0 1 4 :	£ 3 2 . 7 6 m )	
o f	w h i c h	£ 2 2 . 6 4 m	c o m p r i s e d	c a s h	a n d	
c a s h	e q u i v a l e n t s ,	g i v i n g	u s	s u f fi ci e n t	
capacity to initiate our accelerated 
o w n e d	h o t e l	g r o w t h	s t r a t e g y .	
Financial highlights
2014 2015
Owned hotel revenue
£4.03m
£4.03m £2.30m
2014 2015
Gross profit margin*
6 7 .8%
67.8% 67.3%
2014 2015
Franchised hotel revenue
£1.51m
£1.51m £1.25m
Taxation
The effective tax charge for the period 
w a s	2 3 %	( 2 0 1 4 :	2 9 % ) .	T h e	u n d e r l y i n g	
t a x	c h a r g e	f o r	t h e	p e r i o d	w a s	2 1 %	
( 2 0 1 4 :	2 5 % ) .
Earnings per share and dividend
N e t	i n c o m e	f o r	t h e	y e a r	w a s	£ 0. 6 1 m	
( 2 0 1 4 : 	 £0.4 1 m ) . 	 B as i c 	 ea rn i ng s 	 per 	 sha r e	
w a s	1 .0 p	( 2 0 1 4 :	 1 . 2 p ) .
I n	li n e	w i t h	t h e	C o m p a n y ’ s	d i v i d e n d	
policy, that dividends paid should be 
b e t w e e n	3 0 % - 5 0 %	o f	p o s t - t a x	p r o fi t s ,	
t h e	B o a r d	i s	p r o p o s i n g	a	m a i d e n	fi n a l	
dividend of 0.33 pence per ordinary 
s h a r e	( 2 0 1 4 :	£ N i l ) ,	a m o u n t i n g	t o	3 4 %	
of total net income.
Marc Vieilledent
C h i e f	F i n a n ci a l	O f fi c e r
*  This excludes South Africa 
one-off fee easyHotel plc Annual report and accounts 2015 12
Strategic report
Principal risks and uncertainties
Organisational risks
Risk
F a i l u r e	t o	g r o w	t h e	o w n e d	a n d	
franchised hotel portfolio in line  
w i t h	s t r a t e g i c	t a r g e t s .
How we manage the risk
O u r	e x e c u t i v e	a n d	w i d e r	m a n a g e m e n t	
team have been strengthened this year 
and have extensive sector experience. 
They are supported by specialist external 
advisers to ensure that the Group 
m a x i m i s e s	i t s	p o t e n t i a l	f o r	g r o w t h	 
i n	i t s	o w n e d	a n d	f r a n c h i s e	p o r t f o li o .
Risk
Brand reputational damage.
How we manage the risk
T h e	G r o u p	o p e r a t e s	t o	d e fi n e d	
brand standards and ensures their 
m a i n t e n a n c e	t h r o u g h	a n y	n e w	p r o p e r t y	
developments and by using KPIs and 
good communications on a day-to-day 
operational basis. Close co-operation 
w i t h	e a s y G r o u p	o n	I P	m a t t e r s	e n s u r e s	
the ‘easy’ brand is actively protected.
Risk
Failure to raise capital necessary for 
future development.
How we manage the risk
The Group has current debt capacity 
and net cash available for its medium-term 
d ev e lo p m e n t 	 a s pi r a t io ns . 	 W e 	 ar e 	 w o r k i n g	
with 	 ex terna l 	 advi sers 	 t o 	 con s i der 	 the 	 mo s t	
appropriate means of sourcing capital to 
meet our longer-term development plans.
Risk
S i g n i fi c a n t	p o li t i c a l	o r	e c o n o m i c	c h a n g e s	
adversely impact the business.
How we manage the risk
The business is geographically diverse 
a n d	f o c u s e d	o n	l o c a t i o n s	w i t h	s t r o n g	
track records. The balance of franchised 
a n d	o w n e d	h o t e l s	i n	t h e	p o r t f o li o	a l s o	
reduces the direct risk. Industry data 
and trends are actively monitored so that 
appropriate pricing, cost and property 
investment adjustments can be made.
Risk
Dominance by major shareholder 
impacts business development.
How we manage the risk
A	r e l a t i o n s h i p	a g r e e m e n t	w i t h	
e a s y G r o u p ,	t o g e t h e r	w i t h	r e s t r i c t i o n s	o n	
easyGroup’s shareholder voting rights, 
ensures the Group is able to operate 
independently of its major shareholder. 
Operational risks
Risk
Disaster incidents seriously impact the 
b u s i n e s s	s u c h	a s	fi r e ,	fl o o d ,	t e r r o r i s t	
attack or internet failure.
How we manage the risk
A comprehensive disaster recovery 
p l a n 	 wi th 	 bac k -u p 	 p r ocesses 	 a nd 	 faci li t i es	
to ensure the business can continue 
t o	o p e r a t e	w i t h	m i n i m a l	i n t e r r u p t i o n	
i s	b e i n g	i m p l e m e n t e d	a n d	t e s t e d	n o w .	
T h i s	c o m b i n e s	w i t h	r e g u l a r	r e v i e w	o f	o u r	
insurance to ensure adequate protection 
in the event of a disaster event.
Risk
Failure of information systems, cyber 
attack or data protection breach.
How we manage the risk
The Group has specialist service providers 
wh ich 	 advi se 	 a nd 	 suppor t 	 the 	 busi ne s s 	 on	
its IT security. Staff training, data back-up, 
penetration testing and other security 
measures are also in place.
Risk
Loss of key people compromises 
operational ability.
How we manage the risk
We have strengthened our team at all 
levels of operation this year and are 
implementing clear succession plans, 
w r i t t e n	p r o c e d u r e s	a n d	t r a i n i n g	t o	 
e n s u r e	k n o w l e d g e	i s	a p p r o p r i a t e l y	
shared and protected.
Risk
Failure of a key supplier.
How we manage the risk
O u r	b u s i n e s s	i s	r e li a n t	o n	a	f e w	k e y	
s u p p li e r s	w h o	p r o v i d e	s e r v i c e s	s u c h	a s	
laundry, housekeeping and reservations 
systems. Due diligence to reduce the 
likelihood of supplier failure, and 
contingency plans to ensure operations 
can continue, mitigate this risk.
Risk
Direct bookings via easyHotel  
w e b s i t e	r e d u c e .
How we manage the risk
The Group has substantially upgraded  
it s 	 website 	 th i s 	 ye a r 	 usi ng 	 loca l 	 la nguage s	
and supporting SEO activity to maximise 
d i r e c t 	 booki ngs. 	 T he 	 pr ofi ta bi lit y 	 o f	
adding online agency bookings to our 
processes is also currently being explored.
Risk
Health and safety standards 
are compromised.
How we manage the risk
Risk assessments are completed, 
doc u mente d 	 a nd 	 a n n ua l ly 	 r e view e d 	 for	
each location. Staff training, both on 
i nduc ti on 	 a nd 	 r e gu la rly 	 af ter w a r ds ,	
the 	 a ppo i ntment 	 o f 	 fir e 	 ma rsha ls 	 a nd	
tr a i ne d 	 firs t 	 a iders 	 a nd 	 ma i ntena nce 	 o f	
appropriate accident reporting procedures 
safeguard against breach of our 
responsibilities to both staff and guests.
S e e 	 a lso 	 note 	 3 	 t o 	 the 	 fina ncia l 	 s tatement s	
f o r	f u r t h e r	i n f o r m a t i o n	o n	fi n a n ci a l	r i s k s .
This Strategic report has been approved 
and authorised for issue by the Board of 
D i r e c t o r s	o n	8	D e c e m b e r	2 0 1 5	a n d	w a s	
s i g n e d	o n	i t s	b e h a l f	by :
Marc Vieilledent
Director Governance Financial statements Strategic report
13 easyHotel plc Annual report and accounts 2015
The Company currently has four Directors, 
of which two are Independent Non-Executives.
Board of Directors
Guy Parsons
Chief Executive Officer
Guy has over 25 years of hotel and leisure 
industry experience. Guy spent seven years with 
Accor S.A. as the Director of Operations, 
Sales and Marketing of Novotel UK Limited. 
Guy joined Whitbread plc in 1997 as Marketing 
Director for Travel Inn before being promoted 
to Sales and Marketing Director for the 
Whitbread Hotel Company and subsequently, 
Managing Director of TGI Fridays. He joined the 
Travelodge Board in 2004 and was promoted 
to Chief Executive Officer in 2010, leading the 
successful growth of the business to over 
500 hotels in the UK, Ireland and Spain. 
Guy is also a Non-Executive Director of 
the Yorkshire Building Society.
Guy was appointed as an Executive Director 
of the Company in August 2015.
Marc Vieilledent
Chief Financial Officer
Marc is a French Certified Public Accountant, 
having previously qualified with Price Waterhouse. 
Marc joined the Company following 16 years at 
Accor S.A., where he worked until 2013, with his 
most recent role being Executive Vice President of 
asset management. Marc is also a Non-Executive 
Director of the French shopping centre real 
estate owner, Immochan SA.
Marc was appointed as an Executive Director 
of the Company in May 2015.
• Audit Committee
• Remuneration Committee
• Chairman of Committee C
Jonathan Lane OBE
Non-Executive Chairman  
 
 
Jonathan, a Chartered Surveyor, has been 
Non-Executive Chairman of Shaftesbury PLC, 
a FTSE 250 real estate investment trust since 
2013. He was Chief Executive until 2011 and 
Deputy Chairman until 2013. Jonathan is 
Non-Executive Chairman of The Tennis 
Foundation and a Trustee of the Royal 
Theatrical Support Trust.
Jonathan was appointed as a Non-Executive 
Director of the Company in June 2014 and 
became Non-Executive Chairman in July 2015. 
He is a member of both the Audit and 
Remuneration Committees.
Scott Christie
Non-Executive Director  
C
 
C
Scott qualified as a Chartered Accountant 
with Coopers & Lybrand. He went on to 
spend ten years in senior financial and 
change management roles with Diageo PLC. 
He then joined Macdonald Hotels PLC as 
Group Finance Director and then Chief 
Operating officer. Since then, Scott has held 
a number of roles in private equity backed 
technology and healthcare businesses.
Scott was appointed as a Non-Executive Director 
of the Company in June 2014 and chairs both 
the Audit and Remuneration Committees. easyHotel plc Annual report and accounts 2015 14
Governance
Chairman’s corporate governance report
The Board recognises that effective 
corporate governance is essential for 
delivering long-term value growth and 
for meeting shareholder expectations for 
leadership and oversight of the business. 
With this in mind it has adopted policies 
and procedures which reflect the principles 
of the QCA’s Corporate Governance 
Guidelines for Smaller Quoted Companies 
and the principles and appropriate 
provisions of the UK Corporate Governance 
Code. The Board’s practices reflect the 
Company’s culture and circumstances, 
including size, complexity and risk, and 
it is anticipated that practice in this area 
will continue to evolve as the business 
develops. For this reason, governance 
arrangements are kept under review.
The Board
The Board comprises two Executive 
Directors together with two Non-Executive 
Directors. Our Directors’ biographical 
details can be found on page 13. Both 
Non-Executive Directors are considered 
to be independent and free from any 
material business or other relationships 
which could materially interfere with the 
exercise of their independent judgement.
The Board is responsible for the overall 
strategy of the business and oversight 
of the Company’s performance, risks, 
financial matters and other significant 
issues. The Company’s strategy is 
articulated on pages 8–9.
Supported by the Company Secretary, the 
Board meets regularly and its agendas are 
set to focus on strategy and key decisions 
Board attendance
The Directors of the Company are committed to sound governance of the business and they each devote sufficient time to ensure 
this happens. The table below sets out the attendance statistics for each Director at Board and, where relevant, Committee meetings 
held during the financial year.
Director
Board attendance
12 meetings held
Audit Committee
 attendance
3 meetings held
Remuneration
 Committee attendance
4 meetings held
Jan Åstrand
1
10 3 —
Simon Champion
2
9 — —
Scott Christie 12 3 4
Jonathan Lane OBE 11 1 4
Darren Mee
3
4 — —
Guy Parsons
4
1 — —
Marc Vieilledent
5
4 — —
1 Jan Åstrand attended all Board and Committee meetings held prior to his resignation on 1 July 2015. 
2 Simon Champion attended nine out of the ten Board meetings held prior to his resignation on 30 July 2015. 
3 Darren Mee attended all Board meetings held prior to his resignation on 29 January 2015. 
4 Guy Parsons has attended all Board meetings held since his appointment on 10 August 2015. 
5 Marc Vieilledent has attended all Board meetings held since his appointment on 5 May 2015.
and to enable proper monitoring and 
oversight of the business to be undertaken. 
There is a schedule of matters which are 
reserved to the Board and documentation 
in place to clarify the nature and extent 
of delegations. In particular, the division of 
responsibility between the Chairman, who 
is responsible for leading the Board and 
its governance of the Company, and the 
Chief Executive Officer, who is responsible 
for management of the business and 
delivery of the Company’s strategy, is clear.
After a period of change in 2015, the Board 
intends to evaluate formally its performance 
and effectiveness during 2016.
Committees
The Board has established an Audit 
Committee comprising the Company’s 
two Non-Executive Directors, which 
is chaired by Chartered Accountant, 
Scott Christie. The Committee is responsible 
for oversight of the Company’s financial 
statements, risk management, audit and 
auditor relationship, and internal controls 
and procedures. The Audit Committee, 
supported by the Company Secretary, plans 
appropriately on an annual basis in order 
to enable it to discharge its duties as set 
out in its terms of reference. A more 
detailed report from the Audit Committee 
can be found on page 16.
The Board has also established a 
Remuneration Committee to oversee 
remuneration policy and determine 
the remuneration and benefits of the 
Company’s Executive Directors as well as 
other terms relevant to their appointment. 
This Committee also comprises the 
Company’s two Non-Executive Directors 
and is chaired by Scott Christie. Amongst 
other things, during the year the Committee 
has taken external advice on the Company’s 
share based incentive plans and has made 
recommendations to the Board to ensure 
that relevant performance targets are 
aligned with the Company’s strategy and 
are sufficiently stretching. Further details of 
the Remuneration Committee’s work and 
the Company’s remuneration arrangements 
can be found on pages 17–19. Approval 
of the remuneration report will be sought 
at the Company’s Annual General Meeting.
The Board has chosen not to establish 
a Nomination Committee and instead 
will deal with such matters, including 
succession planning and reviewing 
the balance of the Board, itself.
Shareholder relationships
As well as through formal events such as 
the AGM and presentation of the annual 
and half-year results, the Board, primarily 
through the Chief Executive Officer, seeks 
to build a constructive and transparent 
dialogue with the Company’s shareholders 
in order to appreciate better shareholders’ 
views and expectations and to enhance 
investors’ understanding of the Company’s 
strategy and how that strategy will be 
delivered and implemented.
Information on the Company’s investor 
relations website is kept updated and 
provides details of relevant developments, 
regulatory announcements and the 
results of general meetings. Governance Financial statements Strategic report
15 easyHotel plc Annual report and accounts 2015
Directors’ report
The Directors are pleased to submit their 
report on easyHotel plc for the financial 
year ended 30 September 2015.
Review of the business
The Group is required to set out 
in this report a fair review of the 
business and future developments of the 
Group during the financial year ended 
30 September 2015 and the position of 
the Group at the year end. This information 
can be found in the Chairman’s Statement 
page 2–3, the Chief Executive’s Officer’s 
Review on pages 4–7 and the Chief 
Financial Officer’s Review on pages 10–11 
and in the rest of the report.
Post-year end developments
As announced in October 2015, the 
Group’s Benelux franchisee secured 
planning consent and financing for a 
proposed 107 room easyHotel Brussels 
project and, as a consequence, the 
Group has received repayment of its 
€3.3m security deposit and has been 
entirely released from any future step-in 
obligation related to the project. The 
Group had also entered into an agreement 
to lend the franchisee €850k in relation 
to the Brussels project. This amount was 
repaid in full during the financial year.
Dividends
A maiden dividend of 0.33 pence per 
ordinary share has been recommended 
by the Directors for the financial year ended 
30 September 2015. Subject to approval 
at the Company’s Annual General 
Meeting, the dividend will be paid on 
11 February 2016 to all shareholders 
on the register as at 8 January 2016.
Charitable and political donations
There were no charitable or political 
donations made during the financial 
year to 30 September 2015.
Substantial shareholders (as at 
30 September 2015)
Name Holdings %
easyGroup 
Holdings 34,812,300 55.7
Polar Capital 8,062,500 12.9
Schroder Investment 
Management 3,125,000 5.0
Auditors
BDO LLP has expressed its willingness 
to continue in office as auditor and a 
resolution to re-appoint BDO LLP will 
be proposed at the forthcoming AGM.
Corporate Governance Statement
The Chairman’s report on corporate 
governance, which describes the practice 
and responsibilities of the Board and its 
Committees, can be found on page 14.
Financial risk management 
objectives and policies
Further information has been set out 
in note 3 to the financial statements.
Disclosure of information to auditors
All of the current Directors have taken 
all the steps they ought to have taken to 
make themselves aware of any information 
needed by the company’s auditor for the 
purposes of their audit and to establish that 
the auditor is aware of that information. 
The Directors are not aware of any relevant 
information of which the auditor is unaware.
This Directors’ report has been approved 
and authorised for issue by the Board of 
Directors on 8 December 2015 and was 
signed on its behalf by:
Marc Vieilledent
Director
Directors
The Directors who served during the year ended 30 September 2015 were as follows:
Name of Director Board title 
Jonathan Lane OBE Non-Executive Chairman
Scott Christie Non-Executive Director
Guy Parsons Chief Executive Officer Appointed 10 August 2015
Marc Vieilledent Chief Financial Officer Appointed 5 May 2015
Jan Åstrand Executive Chairman Resigned 1 July 2015
Simon Champion Chief Executive Officer Resigned 30 July 2015
Darren Mee Chief Financial Officer Resigned 29 January 2015 easyHotel plc Annual report and accounts 2015 16
Governance
Audit Committee report
Audit Committee
The Audit Committee members are 
Scott Christie, who is its Chairman, 
and Jonathan Lane OBE. Scott is a 
Chartered Accountant.
The Committee is supported by the 
Company Secretary and held three 
meetings during the year ended 
30 September 2015. The Group’s 
external auditors and Executive Directors 
attend the Committee’s meetings as 
appropriate and the Committee ensures 
that the auditors also have an opportunity 
to speak to the Committee in the 
absence of management.
The Committee’s agendas are planned 
on an annual basis to ensure all the 
Committee’s duties are discharged in 
a timely manner in accordance with 
its terms of reference. As the Group has 
no separate Risk Committee, the Audit 
Committee also has responsibility for 
oversight of the Group’s risk management 
activities. These areas are reported on 
below, with a summary of the principal 
risks and uncertainties faced by the 
business provided on page 12.
Financial statements
The Committee met to review both the 
annual and half-year financial statements 
and to discuss with the external auditors 
the audit plan, including its scope, and the 
findings from their audit work. In particular, 
the auditors’ views on the Group’s results, 
accounting policies and the adequacy 
of financial controls, any unadjusted audit 
differences, post-year end events, 
management responses and materiality 
judgements were examined and deemed 
to be satisfactory.
Auditor objectivity
The Committee recognises the importance 
of auditor objectivity and independence in 
providing assurance to investors about the 
integrity of the Group’s financial statements. 
The Committee receives information in 
writing from the auditors on their fees 
(audit and non-audit) and the firm’s internal 
procedures to ensure that independence 
– both the firm’s and that of its relevant 
audit staff, audit manager and audit 
partner – are reviewed and properly 
assessed. The Committee has discussed 
and appropriately challenged such issues 
with the audit partner and deemed their 
responses to be satisfactory.
The firm’s audit partner is being 
rotated at the end of the 2014/15 audit. 
The Committee has considered whether 
an audit tender should be recommended 
to the Board but has concluded that to do 
so at this time would not be in easyHotel’s 
best interests. The Committee has therefore 
recommended to the Board that, subject 
to approval by the shareholders at the 
2016 annual general meeting, the 
appointment of BDO LLP as the Group’s 
auditor be renewed.
Principal risks and uncertainties
The Board has primary responsibility 
for ensuring the Group’s risks are properly 
understood, quantified and appropriately 
managed but it looks to the Audit 
Committee to provide assurance on risk 
management processes and controls. 
The Audit Committee has reviewed the 
Group’s risk register and the actions 
proposed and taken by management to 
mitigate risk and to reduce the likelihood 
and impact of the risks faced by the 
business and has deemed them satisfactory.
The principal risks and uncertainties of the 
business and how they are managed are 
set out on page 12 (see also note 3 to 
the financial statements – “Financial 
instruments – risk management”). Governance Financial statements Strategic report
17 easyHotel plc Annual report and accounts 2015
Remuneration report
As an AIM company, easyHotel plc is 
not required to comply with Schedule 8 
of the Large and Medium-sized Companies 
and Groups (Accounts and Reports) 
Regulations 2008. However, in the interests 
of transparency, expanded disclosure has 
been provided on a voluntary basis in 
order to provide shareholders with an 
overview of our remuneration practices. 
The content of this report is unaudited 
unless stated.
Remuneration Committee
The Remuneration Committee is made 
up of Scott Christie (who became 
Chairman of the Committee on 2 July 2015) 
and Jonathan Lane OBE (who served 
as Chairman of the Committee until 
2 July 2015). The Committee reviews the 
performance of the Executive Directors 
and sets the scale and structure of their 
remuneration and the basis of their 
service agreements with due regard to 
the interests of shareholders and to the 
pay and conditions of other Group staff 
members. The Remuneration Committee 
also makes recommendations to the Board 
concerning the structure of the Group’s 
bonus and long-term incentive schemes, 
the awards made under such plans and 
the performance conditions attached to 
them. The Committee seeks support from 
external advisers as necessary and during 
the year, Deloitte were appointed to assist 
the Committee with their review of certain 
elements of the Group’s incentive 
arrangements. No other services were 
provided by Deloitte to the Group 
during the year.
During the year ended 30 September 2015, 
the Committee met four times.
Remuneration policy
The objective of the Group’s remuneration 
policy is to ensure that the overall 
remuneration of Executive Directors is 
aligned with the strategy, performance 
and risk tolerance of the Group, whilst 
preserving an appropriate balance of 
profit delivery and shareholder value. 
The overall arrangements are designed 
to support the delivery of the Company’s 
long-term strategic goals.
The remuneration arrangements for 
Executive Directors consist of basic salary, 
payment in lieu of pension contribution, 
annual performance-related bonuses 
and long-term performance share awards.
In determining the remuneration of 
Executive Directors, the Remuneration 
Committee seeks to enable the Group 
to attract, retain and motivate Executives 
of the highest calibre but without paying 
more than is necessary for this purpose. 
During the year, the Group recruited two 
Executive Directors and on each of these 
occasions the Committee applied these 
principles to determine the appropriate 
remuneration package offered.
Since listing, the Remuneration 
Committee has worked to establish 
performance-related incentives that 
support the delivery of easyHotel’s 
strategic goals ensuring that individual 
rewards are linked to clear and stretching 
corporate and individual targets. These 
performance-related elements of pay 
are intended to represent a significant 
proportion of each Executive Director’s 
overall remuneration.
When reviewing the basis for annual 
bonus awards, the Committee has 
determined that, at this stage in the 
Group’s development, an appropriate 
emphasis for the 2016 cash bonus 
targets would be delivery of EBITDA 
targets and measurable pipeline growth 
in both the owned and franchised hotel 
elements of the Group’s portfolio for the 
future in line with the Company’s medium 
term strategy. On-target performance will 
be rewarded with a cash bonus equivalent 
to 50% of base salary, with a 100% bonus 
being the maximum payable in the event 
that stretch targets are achieved.
The Committee undertook a review 
of the Company’s long-term incentive 
strategy, and determined that the easyHotel 
Share Option Plan established at the 
time of the IPO was not an appropriate 
long-term share based scheme for 
incentivising Executive Directors going 
forward. The Committee therefore 
recommended to the Board establishment 
of the easyHotel 2015 Performance 
Share Plan. This plan enables the grant 
of conditional share awards which are 
subject to achievement of performance 
criteria typically measured over a 
three-year performance period. Awards 
of up to 200% of salary can be granted 
under the plan, however it is expected 
that normal awards will be capped at 
100% of salary.
The current intention is for the first 
awards under the 2015 Performance 
Share Plan to be granted shortly after 
announcement of the Company’s 2015 
year end results. Initial awards to each of 
the Executive Directors will be equivalent 
to 200% of their base salary as agreed 
with them on recruitment. Thereafter, it 
is expected that normal awards in future 
years will be equivalent to 100% of salary. 
The performance criteria for the initial 
awards, based on performance over 
the 2016, 2017 and 2018 financial years, 
will be finalised by the Remuneration 
Committee prior to the grant of awards. 
The current intention is that the award 
will be linked to creation of shareholder 
value, growth in the rooms’ pipeline 
and achievement of robust financial 
performance. The majority of the award 
(80% of the total award) will be linked to 
delivery of total shareholder returns and 
growth in both the franchised and owned 
hotel rooms’ pipeline. These are lead 
measures of how effectively the Company 
delivers on the strategy and how this 
translates into returns for shareholders. 
The financial element of the plan (20% 
of the award) will be linked to delivery of 
ROCE (based on owned-hotels) and net 
EBITDA margin targets. The Committee 
will retain discretion to scale-back 
vesting from the financial element if 
performance against the lead targets 
falls below the threshold levels.
Targets for each element will be 
scaled so that threshold performance 
results in vesting of 30% of the award 
with full vesting requiring delivery of 
stretch targets across all measures. 
Further detail regarding the awards 
will be disclosed in due course after 
the exact performance criteria have 
been agreed and finalised.
Non-Executive Directors
Remuneration of the Non-Executive 
Directors is determined by the Board as 
a whole, with the relevant Non-Executive 
Director taking no part in the discussions 
or decision in relation to his own fees. 
The Non-Executive Directors are not 
entitled to annual bonuses or employee 
benefits. Each of the Non-Executive 
Directors has a letter of appointment 
stating, amongst other things, his annual 
fee and that his appointment may be 
terminated by either party giving one 
month’s prior written notice. easyHotel plc Annual report and accounts 2015 18
Governance
Remuneration report (continued)
Directors’ remuneration (in UK £) (audited)
Amounts disclosed below exclude social security contributions.
Year ended 30 September 2015
Basic
salary
£
Payment 
in lieu of
pension
£
Bonuses
£
Termination
payments
1
£
Total
£
Non-Executive Chairman
J Lane OBE 43,656 — — — 43,656
Executive Directors 
G Parsons 30,423
4
3,042 — — 33,465
M Vieilledent 59,115
4
5,911 35,000
2
— 100,026
Non-Executive Director
S Christie 46,237
3
— — — 46,237
Former Executive Directors 
J Åstrand 60,215
4
— — — 60,215
S Champion 145,833
4
14,583 — 151,712 312,128
D Mee 51,560
4
5,156 — — 56,716
Total Directors’ remuneration for the 
year ended 30 September 2015 437,039 28,692 35,000 151,712 652,443
1  Simon Champion received a termination payment in accordance with his service agreement, six months’ pay in lieu of notice was due on termination of 
Simon Champion’s contract in addition to which additional payments of £50,100 were agreed. The pay in lieu of notice is subject to mitigation provisions 
and therefore may not be payable in full.
2  On appointment, a fixed cash bonus of £35,000 for the year ended 30 September 2015 was agreed to be paid to Marc Vieilledent.
3   Scott Christie received an additional one-off fee of £10,000 during the year to reflect the extra commitment and support he provided to the Company during 
the period when no Chief Financial Officer held office.
4  Basic salary (and corresponding payment in lieu of pension contribution) relate to part year in office as follows: 
G Parsons – from appointment on 10 August 2015 to 30 September 2015 
M Vieilledent – from appointment on 5 May 2015 to 30 September 2015 
J Åstrand – from 1 October 2014 to termination on 1 July 2015 
S Champion – from 1 October 2014 to termination on 30 July 2015 
D Mee – from 1 October 2014 to termination on 29 January 2015.
The Company’s Executive Directors, Guy Parsons and Marc Vieilledent, each hold a Non-Executive Directorship with one other 
company and are permitted to retain the fees received in respect of those appointments. Details of their respective Non-Executive 
appointments are detailed on page 13. Governance Financial statements Strategic report
19 easyHotel plc Annual report and accounts 2015
Year ended September 2014
Basic salary
£
Payment in
lieu of pension
£
Bonuses
£
Total
£
Chairman
J Åstrand 20,000 — — 20,000
Executive Directors
S Champion 111,250 4,375 — 115,625
D Mee 37,500 3,750 — 41,250
Non-Executive Directors
S Christie 9,423 — — 9,423
J Lane OBE 9,423 — — 9,423
Total Directors’ remuneration for the 
year ended 30 September 2014 187,596 8,125 — 195,721
The amounts paid to certain Directors relate to that part of the 2014 financial year remaining after their appointments as follows:
J Åstrand – appointed 14 May 2014 
S Christie – appointed 24 June 2014
J Lane OBE – appointed 24 June 2014
D Mee – appointed 12 May 2014
Directors’ interests (as at 30 September 2015)
As at 30 September 2015, the following Directors held, or had interests in, the shareholdings set out below:
Name
Ordinary
shares
% of issued
share capital
Guy Parsons 125,833 0.2
Scott Christie 37,500 0.1
Jonathan Lane OBE 62,500 0.1
As at 30 September 2015, all share options in which a Director or past Director had any interest had lapsed. Their past interests 
in Ordinary Shares, pursuant to share options granted by the Company under the conditions of the easyHotel Share Option Plan, 
have now lapsed in full as set out below:
Option Holder Date of grant
Ordinary shares
under option at
30 September
2014
Exercise
price
Forfeited/
lapsed during
 the year
Ordinary shares
under option at
30 September
2015
Jan Åstrand 24 June 2014 125,000 110p 125,000 0
Simon Champion 24 June 2014 1,000,000 100p 1,000,000 0
Darren Mee 24 June 2014 500,000 110p 500,000 0
More information on the Share Option Scheme can be seen in note 27 to the financial statements. easyHotel plc Annual report and accounts 2015 20
Governance
Statement of responsibilities
Internal control
The Board has overall responsibility for the 
Group’s internal control systems and for 
reviewing the effectiveness of the systems, 
taking into account the size of the Group 
and the nature of its activities. Such systems 
are only designed to manage, rather than 
eliminate, the risk of failure and will only 
provide reasonable and not absolute 
assurance against material misstatement 
or loss.
Going concern
In considering the going concern basis 
for preparing the financial statements, 
the Directors have considered the Group’s 
objectives and strategy, the risks and 
uncertainties to achieving the objectives 
and the review of the business performance, 
all of which are set out in the Strategic 
Report section of this report and accounts. 
The Group’s liquidity and funding 
arrangements are set out in notes 16 
and 18 to the financial statements. 
The Directors consider that the Group 
has significant cash and borrowing 
facilities for the foreseeable future.
Accordingly, after reviewing the Group’s 
expenditure commitments, current financial 
projections and expected future cash flows, 
together with available cash resources and 
undrawn committed borrowing facilities, the 
Directors have considered that adequate 
resources exist for the Group to continue 
in operational existence for the foreseeable 
future. On this basis, the Directors continue 
to adopt the going concern basis in 
preparing the financial statements.
Directors’ responsibilities 
The Directors are responsible for 
preparing the annual report and the 
financial statements in accordance with 
applicable law and regulations.
Company law requires the Directors 
to prepare financial statements for 
each financial year. Under that law the 
Directors have elected to prepare the 
Group and Company financial statements 
in accordance with International Financial 
Reporting Standards (IFRSs) as adopted 
by the European Union. Under company 
law the Directors must not approve the 
financial statements unless they are satisfied 
that they give a true and fair view of the 
state of affairs of the Group and Company 
and of the profit or loss of the Group and 
Company for that period. The Directors 
are also required to prepare financial 
statements in accordance with the rules 
of the London Stock Exchange for 
companies trading securities on the 
Alternative Investment Market.
In preparing these financial statements, 
the Directors are required to:
•  select suitable accounting policies 
and then apply them consistently;
•  make judgements and accounting 
estimates that are reasonable 
and prudent;
•  state whether they have been prepared 
in accordance with IFRSs as adopted 
by the European Union, subject to any 
material departures disclosed and 
explained in the financial statements; and
•  prepare the financial statements on 
the going concern basis unless it is 
inappropriate to presume that the 
Company will continue in business.
The Directors are responsible for 
keeping adequate accounting records 
that are sufficient to show and explain 
the Company’s transactions and disclose 
with reasonable accuracy at any time the 
financial position of the Company and 
enable them to ensure that the financial 
statements comply with the requirements 
of the Companies Act 2006. They are 
also responsible for safeguarding the 
assets of the Company and hence for 
taking reasonable steps for the 
prevention and detection of fraud 
and other irregularities.
Website publication
The Directors are responsible for 
ensuring the annual report and the 
financial statements are made available 
on a website. Financial statements are 
published on the Company’s website 
in accordance with legislation in the 
United Kingdom governing the preparation 
and dissemination of financial statements, 
which may vary from legislation in other 
jurisdictions. The maintenance and 
integrity of the Company’s website is 
the responsibility of the Directors. 
The Directors’ responsibility also extends 
to the ongoing integrity of the financial 
statements contained therein.
Further information and investor updates 
can be found on our website at  
http://ir.easyHotel.com. Governance Financial statements Strategic report
21 easyHotel plc Annual report and accounts 2015
Independent auditors’ report
to the members of easyHotel plc
We have audited the financial statements of easyHotel plc for the year ended 30 September 2015 which comprise the consolidated 
statement of comprehensive income, the consolidated and Company statement of financial position, the consolidated and Company 
statement of cash flows, the consolidated and Company statement of changes in equity and the related notes. The financial reporting 
framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) 
as adopted by the European Union and, as regards the parent company financial statements, as applied in accordance with the 
provisions of the Companies Act 2006.
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to 
them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility 
to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions 
we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the Statement of Directors’ Responsibilities, the Directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the 
financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards 
require us to comply with the Financial Reporting Council’s (FRC’s) Ethical Standards for Auditors. 
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the FRC’s website at www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements
In our opinion: 
•  the financial statements give a true and fair view of the state of the Group’s and the parent company’s affairs as at 
30 September 2015 and of the Group’s profit for the year then ended;
• the financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and Directors’ Report for the financial year for which the financial 
statements are prepared is consistent with the financial statements. 
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, 
in our opinion:
•  adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been 
received from branches not visited by us; or
• the parent company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Marc Reinecke (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditors
London
United Kingdom
8 December 2015
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). easyHotel plc Annual report and accounts 2015 22
Financial statements
Consolidated statement of comprehensive income
for the year ended 30 September 2015
Note
2015
£
2014
£
System sales 2 19,950,888 17,327,350
Revenue 4 5,541,392 3,543,948
Cost of sales (1,729,456) (1,158,444)
Gross profit 3,811,936 2,385,504
Administrative expenses (2,880,912) (1,702,747)
Operating profit 5 931,024 682,757
Analysed as:
Adjusted EBITDA* 5 1,456,565 1,729,918
Non-recurring items 5 (75,941) (555,499)
Hotel pre-opening and development costs 5 (32,528) —
Depreciation and amortisation (387,000) (410,771)
Share-based payments 27 (30,072) (80,891)
931,024 682,757
Finance income 8 187,343 16,640
Finance expense 9 (330,794) (126,822)
Profit before taxation 787,573 572,575
Taxation 10 (178,187) (164,656)
Profit for the year 609,386 407,919
Other comprehensive income — —
Total comprehensive income 609,386 407,919
Attributable to equity holders of the Company 609,386 407,919
Earnings per share for profit attributable to the ordinary equity holders 
of the Company 
Basic and diluted (pence) 11 1.0 1.2
*  Adjusted EBITDA represents Earnings before Interest, Taxation, Depreciation and Amortisation adjusted for pre-opening costs related to the development of hotels, 
organisational restructuring costs, share based payments and other non-recurring items (see note 5 for details).
The notes on pages 28 to 48 form part of these financial statements. Governance Financial statements Strategic report
23 easyHotel plc Annual report and accounts 2015
Note
2015
£
2015
£
2014
£
2014
£
Assets
Non-current assets
Intangible assets 14 67,266 —
Property, plant and equipment 13 20,950,446 18,795,738 
Total non-current assets 21,017,712 18,795,738
Current assets
Trade and other receivables 15 360,697 922,823
Cash and cash equivalents 16 22,635,566 24,263,974
Corporate taxation 6,908 — 
Total current assets 23,003,171 25,186,797
Total assets 44,020,883 43,982,535
Liabilities
Non-current liabilities
Trade and other payables 17 144,539 435,196
Bank borrowings 18 7,200,000 7,200,000
Deferred tax liability 19 128,472 113,755 
Total non-current liabilities 7,473,011 7,748,951
Current liabilities
Trade and other payables 17 4,106,005 3,417,282
Corporate taxation — 51,674 
Total current liabilities 4,106,005 3,468,956
Total liabilities 11,579,015 11,217,907
Total net assets 32,441,868 32,764,628
Equity
Equity attributable to owners of the Company
Share capital 20 625,000 625,000
Share premium 21 28,592,036 28,592,036
Merger reserve 21 2,750,001 2,750,001
EBT reserve 21 (1,067,405) (105,187)
Retained earnings 21 1,542,236 902,778 
Total equity 32,441,868 32,764,628
The financial statements on pages 22 to 48 were approved and authorised for issue by the Board of Directors on 8 December 2015 
and were signed on its behalf by:
Marc Vieilledent
Director
The notes on pages 28 to 48 form part of these financial statements.
Consolidated statement of financial position
for the year ended 30 September 2015
Company number 09035738 easyHotel plc Annual report and accounts 2015 24
2015
£
2014
£
Cash flows from operating activities
Profit before taxation for the year 787,573 572,575
Adjustments for:
Depreciation and amortisation 387,000 410,771
Share-based payment charge 30,072 80,891
Finance income (187,343) (16,640)
Finance expense 330,794 126,822
Operating cash flows before movements in working capital 1,348,096 1,174,419
Decrease/(increase) in trade and other receivables 562,126 (895,464)
Increase in trade and other payables 382,130 830,056
Cash generated from operations 2,292,352 1,109,011
Corporation tax paid (222,053) (90,000)
Net cash flows from operating activities 2,070,299 1,019,011
Finance income 187,343 16,640
Finance expense (151,582) — 
Net cash generated from operations 2,106,060 1,035,651
Investing activities
Purchase of property, plant and equipment (2,592,938) (7,436,176)
Net cash used in investing activities (2,592,938) (7,436,176)
Financing activities
Proceeds from issue of ordinary share capital — 25,241,020
Capitalised costs related to issue of ordinary share capital — (1,032,964)
Related party loan repayments — (1,363,299)
Outflow from own share purchase (962,218) (105,187)
Finance expense (179,212) (126,822)
Bank loan — 7,200,000
Net cash (utilised by)/generated from financing activities (1,141,430) 29,812,748
Net (decrease)/increase in cash and cash equivalents (1,628,308) 23,412,223
Cash and cash equivalents at the beginning of the year 24,263,874 851,751
Cash and cash equivalents at the end of the year 22,635,566 24,263,974
The notes on pages 28 to 48 form part of these financial statements.
Financial statements
Consolidated statement of cash flows
for the year ended 30 September 2015 Governance Financial statements Strategic report
25 easyHotel plc Annual report and accounts 2015
Note
Share
capital
£
Share
premium
£
Merger
reserve
£
EBT
reserve
£
Retained
earnings
£
Total
£
At 30 September 2013 250,000 — 2,750,001 — 413,968 3,413,969
Shareholder capitalisation 
of loans 23 59,487 4,699,493 — — — 4,758,980
Share issue less costs 20 315,513 23,892,543 — — — 24,208,056
Share-based 
payment charge 27 — — — — 80,891 80,891
EBT share purchases 28 — — — (105,187) — (105,187)
Total comprehensive 
income for the year — — — — 407,919 407,919
At 30 September 2014 625,000 28,592,036 2,750,001 (105,187) 902,778 32,764,628
Share-based 
payment charge 27 — — — — 30,072 30,072
EBT share purchases 28 — — — (962,218) — (962,218)
Total comprehensive 
income for the year — — — — 609,386 609,386
At 30 September 2015 625,000 28,592,036 2,750,001 (1,067,405) 1,542,236 32,441,868
The notes on pages 28 to 48 form part of these financial statements.
Consolidated statement of changes in equity
for the year ended 30 September 2015 easyHotel plc Annual report and accounts 2015 26
Note
2015
£
2015
£
2014
£
2014
£
Assets
Non-current assets
Investments 28 3,825,683 3,825,683
Loan to related companies 28 28,476,967 27,220,768 
Loan to Employee Benefit Trust 28 1,300,000 1,300,000 
Total non-current assets 33,602,650 32,346,451
Current assets
Trade and other receivables 15 — 103,691 
Total current assets — 103,691
Total assets 33,602,650 32,450,142
Liabilities
Current liabilities
Trade and other payables 17 68,542 231,057 
Total current liabilities 68,542 231,057
Total liabilities 68,542 231,057
Total net assets 33,534,108 32,219,085
Equity
Equity attributable to owners of the Company
Share capital 20 625,000 625,000
Other reserve 21 3,575,683 3,575,683
Share premium 21 28,592,036 28,592,036
Retained earnings 21 741,389 (573,634) 
Total equity 33,534,108 32,219,085
The financial statements on pages 22 to 48 were approved and authorised for issue by the Board of Directors on 8 December 2015 
and were signed on its behalf by:
Marc Vieilledent
Director
The notes on pages 28 to 48 form part of these financial statements.
Financial statements
Company statement of financial position
for the year ended 30 September 2015
Company number 09035738 Governance Financial statements Strategic report
27 easyHotel plc Annual report and accounts 2015
2015
£
2014
£
Cash flows from operating activities
Loss before taxation for the year (1,215,049) (654,525)
Adjustments for:
Share based payment charge 30,072 80,891
Operating cash flows before movements in working capital (1,184,977) (573,634)
Decrease in amount due from subsidiary 1,243,800 446,268
Decrease/(increase) in trade and other receivables 103,691 (103,691)
(Decrease)/increase in trade and other payables (162,514) 231,057
Net cash inflow from operations — —
Net increase in cash and cash equivalents — —
Cash and cash equivalents at the beginning of the year — —
Cash and cash equivalents at the end of the year — —
The movement in amount due from subsidiary includes a dividend paid to the Company by its subsidiary of £2,500,000. This was 
a non-cash transaction and the amount received has been used to reduce the amount payable to the Company by its subsidiary.
The notes on pages 28 to 48 form part of these financial statements.
Note
Share
capital
£
Other
reserve
£
Share
premium
£
Retained
earnings
£
Total
£
At 30 September 2013 — — — — —
Share exchange on acquisition 28 250,000 3,575,683 — — 3,825,683
Shareholder capitalisation of loans 23 59,487 — 4,699,493 — 4,758,980
Share issue less costs 20 315,513 — 23,892,543 — 24,208,056
Share based payment charge 27 — — — 80,891 80,891
Total comprehensive income for the year — — — (654,525) (654,525)
At 30 September 2014 625,000 3,575,683 28,592,036 (573,634) 32,219,085
Dividends received — — — 2,500,000 2,500,000
Share based payment charge 27 — — — 30,072 30,072
Total comprehensive loss for the year — — — (1,215,049) (1,215,049)
At 30 September 2015 625,000 3,575,683 28,592,036 741,389 33,534,108
A dividend of £2,500,000 was paid to the Company by its subsidiary. This was a non-cash transaction and the amount received 
has been used to reduce the amount payable to the Company by its subsidiary.
The notes on pages 28 to 48 form part of these financial statements.
Company statement of cash flows
for the year ended 30 September 2015
Company statement of changes in equity
for the year ended 30 September 2015 easyHotel plc Annual report and accounts 2015 28
1 Statement of compliance
easyHotel plc (the “Company”) and its wholly owned subsidiary (easyHotel UK Limited) is an international owner, developer, operator 
and franchisor of “easyHotel” branded hotels. The Company is a public limited company whose shares are listed on the AIM exchange 
under the ticker symbol EZH and is incorporated and domiciled in the United Kingdom. The address of the registered office is 
80 Old Street, London EC1V 9AZ. 
The consolidated and parent company accounts are prepared in accordance with International Financial Reporting Standards (IFRS) 
as adopted by the European Union, taking into account International Financial Reporting Interpretations Committee (IFRIC) interpretations 
and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
2 Significant accounting policies
Basis of preparation
The accounts are prepared based on the historical cost convention. The accounting policies set out below have been applied 
consistently to all years presented in these accounts, unless otherwise stated. 
The Company has taken up its exemption for filing individual profit and loss account according to section 408 CA 2006. The Company’s 
profit or loss for the financial year has been approved by the Directors in accordance with section 414(1) (comprehensive loss for 
the year of £1,215,049).
The accounts have been prepared on a going concern basis. Details on going concern are provided in the Statement of Responsibilities 
on page 20.
All amounts are presented in Pound Sterling (GBP, £) except where otherwise indicated.
Basis of consolidation
The consolidated accounts incorporate those of easyHotel plc and its subsidiaries for the years ended 30 September 2014 
and 2015. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, 
using consistent accounting policies. On acquisition of its subsidiary, easyHotel UK Ltd, merger accounting was the basis 
of consolidation.
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has 
rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. 
Subsidiaries are fully consolidated from the date on which control is transferred to the Group.
Intragroup balances and transactions and any unrealised gains and losses arising from intragroup transactions are eliminated 
in preparing the consolidated accounts. 
Investment in subsidiary
easyHotel plc has an investment in easyHotel UK Limited (a wholly owned subsidiary) of £3,825,683 (2014: £3,825,683). 
This investment is held at cost less any reasonable provisions for impairment against the investment of which there are currently none.
The investment eliminates out for the purpose of the consolidation.
Employee Benefit Trust
The EBT’s assets (other than investments in the Company’s shares), liabilities, income and expenses are included on a line-by-line 
basis in the consolidated financial statements and its investment in the Company’s shares is deducted from equity in the consolidated 
statement of financial position as if it were treasury shares.
The EBT is not consolidated in the Company’s own financial statements but the Company recognises any transactions between 
itself and the EBT in accordance with the relevant accounting policy.
Financial statements
Notes forming part of the financial statements
for the year ended 30 September 2015 Governance Financial statements Strategic report
29 easyHotel plc Annual report and accounts 2015
2 Significant accounting policies (continued)
Foreign currency
The primary economic environment in which a subsidiary operates determines its functional currency. The consolidated accounts 
of easyHotel are presented in Sterling, which is the Company’s functional currency and the Group’s presentation currency.
Transactions arising in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets 
and liabilities denominated in foreign currencies are translated into Sterling using the rate of exchange ruling at the balance sheet 
date and the gains or losses on translation are included in the income statement. Non-monetary assets and liabilities denominated 
in foreign currencies are translated into Sterling at foreign exchange rates ruling at the dates the transactions were effected.
System sales
System sales arises from the sale of goods and provision of services where these activities give rise to economic benefits received 
and receivable by the Company and its franchisees. System sales is the full amount that the customer pays for our owned and operated 
hotels, as well as franchisee owned and operated hotels (excluding VAT and similar taxes), including initial sign-on fees paid by 
franchisees to the Company.
Revenue
Revenue arises from the provision of services where these activities give rise to economic benefits received and receivable by the 
Company on its own account and result in increases in equity. Revenue is the full amount that the customer pays for our owned 
and operated hotels, plus fees that we charge to our franchisees (excluding VAT and similar taxes).
Provided the amount, if applicable, can be measured reliably and it is probable that the Company will receive the consideration, 
revenue for services is recognised as follows:
Owned – primarily derived from hotel operations, including the rental of rooms and ad hoc utility services sales from owned hotels 
operated under the easy brand name. Revenue is recognised when rooms are occupied and ad hoc utility services are provided.
Franchise fees – received in connection with the licence of the Company’s brand name, usually under long-term contracts with the 
hotel owner. The Company charges franchise royalty fees and processing fees as a percentage of room revenue and in some cases 
receives an upfront fee on the grant of a franchise. Revenue is earned and recognised when the customer has occupied the room 
at the franchisee’s operated hotel accommodation and for upfront fees revenue is recognised evenly over the term of the franchise 
or exclusivity period or over the period from signing to opening where fees relate to legal, contractual, initial marketing or other 
similar items.
Consideration received in advance for which the revenue recognition criteria above have not been satisfied is deferred until such 
time as the revenue recognition criteria have been satisfied.
Intangible assets
Intangible assets are initially recognised at cost and subsequently amortised on a straight line basis over the expected useful lives 
of the assets as follows:
Website development costs  – over 5 years
Property, plant and equipment
Items of property, plant and equipment are initially recognised at cost and subsequently stated at cost less accumulated depreciation 
and, where appropriate, provision for impairment in value.
Freehold land is not depreciated. Depreciation is provided on all other items of property, plant and equipment so as to write off 
their carrying value, less their residual value, over their expected useful economic lives. It is provided at the following rates:
Freehold building core  – over 50 years
Freehold building surface finishes – over 20 years
Plant and machinery  – over 8–15 years (5 years in 2014 financial year)
Furniture and equipment  – over 3–5 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. easyHotel plc Annual report and accounts 2015 30
Financial statements
Notes forming part of the financial statements (continued)
for the year ended 30 September 2015
2 Significant accounting policies (continued)
Financial assets
The Company has not classified any of its financial assets at fair value through profit or loss, as available for sale or as held 
to maturity.
The Company’s accounting policy for loans and receivables is as follows:
The Company’s loans and receivables comprise trade and other receivables and cash and cash equivalents in the statement 
of financial position. These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in 
an active market. They arise principally through the provision of goods and services to customers (e.g. trade receivables) but also 
incorporate other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly 
attributable to their acquisition or issue and are subsequently carried at amortised cost using the effective interest rate method, 
less provision for impairment. 
Cash and cash equivalents includes cash in hand, cash in transit, restricted cash, deposits held at call with banks and other 
short-term highly liquid investments with original maturities of three months or less.
Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the 
counterparty or default or significant delay in payment) that the Company will be unable to collect all of the amounts due under 
the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value 
of the future expected cash flows associated with the impaired receivable. For trade receivables, which are reported net, such provisions 
are recorded in a separate allowance account with the loss being recognised within administrative expenses in the statement 
of comprehensive income. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset 
is written off against the associated provision.
Financial liabilities
The Group classifies its financial liabilities, depending on the purpose for which the liability was acquired. The Group has not 
classified any of its financial liabilities at fair value through profit or loss.
The Group’s accounting policy for other financial liabilities is as follows:
Trade payables and other short-term monetary liabilities are initially recognised at fair value and subsequently carried at 
amortised cost using the effective interest method.
Taxation
The current tax is based upon the taxable profit for the period together with adjustments, where necessary, in respect of prior periods. 
The Group’s asset or liability for current tax is calculated using tax rates that have been enacted or substantively enacted at the 
financial year-end date.
Current tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other 
comprehensive income or directly in equity.
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the statement of financial 
position differs from its tax base.
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against 
which the difference can be utilised.
The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting 
date and are expected to apply when the deferred tax liabilities/(assets) are settled/(recovered).
Share capital
Financial instruments issued by the Group are classified as equity only to the extent that they do not meet the definition of a 
financial liability.
The Group’s ordinary shares are classified as equity instruments.
Dividends
Dividends are recognised when they become legally payable. In the case of interim dividends to equity shareholders, this is when 
declared by the Directors. In the case of final dividends, this is when approved by the shareholders at the AGM. Governance Financial statements Strategic report
31 easyHotel plc Annual report and accounts 2015
2 Significant accounting policies (continued)
Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. 
The chief operating decision maker has been identified as the Board of Directors.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that 
necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, 
until such time as the assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings, if any, pending their expenditure on qualifying 
assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Provisions
Provisions are recognised for liabilities of uncertain timing or amounts that have arisen as a result of past transactions and are 
discounted at a pre-tax rate reflecting current market assessments of the time value of money and the risks specific to the liability.
Standards, amendments and interpretations to published standards not yet effective
The following standards, interpretations and amendments, have been published but have not been endorsed by the European Union, 
or are not effective for the periods presented and the Group has chosen not to early adopt. All standards listed have to be applied, 
at the latest, from financial years starting on or after 2 October 2014 unless otherwise stated.
No new standards in the year have had a material impact on the financial statements.
• IFRS 9: Financial Instruments (from 1 January 2018)
• IFRS 14: Regulatory Deferral Accounts
• IFRS 15: Revenue from Contracts with Customers (from 1 January 2018)
• IFRS 10 (Amendment): Consolidated Financial Statements
• IFRS 11 (Amendment): Accounting for Acquisitions of Interests in Joint Operations
• IFRS 12 (Amendment): Disclosure of Interests in Other Entities
• IAS 1 (Amendment): Presentation of Financial Statements
• IAS 16 (Amendment): Property, Plant and Equipment 
• IAS 27 (Amendment): Equity Method in Separate Financial Statements
• IAS 28 (Amendment): Investments in Associations and Joint Ventures
• IAS 38 (Amendment): Intangible Assets 
• Annual improvements to IFRS
IFRS 9: Financial Instruments (from 1 January 2018). It is envisaged that this standard will replace IAS 39: Financial Instruments: 
Recognition and Measurement in its entirety. IFRS 9 (2010) deals with classification and measurement of financial assets and its 
requirements represent a significant change from the existing requirements in IAS 39 in respect of financial assets. The standard 
contains two primary measurement categories for financial assets: at amortised cost and fair value. A financial asset would be 
measured at amortised cost if it is held within a business model whose objective is to hold assets in order to collect contractual cash 
flows, and the asset’s contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest 
on the principal outstanding. All other financial assets would be measured at fair value. The standard eliminates the existing IAS 39 
categories of held to maturity, available for sale and loans and receivables. IFRS 9 has not yet been endorsed by the European Union.
The Directors do not anticipate that the adoption of these standards and interpretations will have a material impact on 
easyHotel’s accounts. Certain of these standards and interpretations will, when adopted, require addition to or amendment 
of disclosures in the accounts. easyHotel plc Annual report and accounts 2015 32
Financial statements
Notes forming part of the financial statements (continued)
for the year ended 30 September 2015
2 Significant accounting policies (continued)
Critical accounting estimates and judgements
The Group makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated 
based on historical experience and other factors, including expectations of future events that are believed to be reasonable under 
the circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions 
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial 
year are discussed below.
(a) Impairment of assets
The Group is required to consider assets for impairment where such indicators exist using value in use calculations or fair value 
estimates. The use of these methods may require the estimation of future cash flows and the choice of a discount rate in order 
to calculate the value in use or fair value.
(b) Useful lives of property, plant and equipment
Property, plant and equipment are depreciated over their useful lives. Useful lives are based on the management’s estimates of the 
period that the assets will generate revenue, which along with their estimated residual values are periodically reviewed for continued 
appropriateness. Changes to estimates can result in significant variations in the carrying value and amounts charged to the consolidated 
statement of comprehensive income in specific periods. More details including carrying values are included in note 13.
(c) Taxation
The Group is subject to income tax and significant judgement is required in determining the provision for income taxes. During the 
ordinary course of business, there are transactions and calculations for which the ultimate tax determination is uncertain. As a result, 
the Group recognises tax liabilities based on estimates of whether additional taxes and interest will be due. These tax liabilities are 
recognised when the Group believes that certain positions are likely to be challenged and may not be fully sustained upon review 
by tax authorities. The Group believes that its accruals for tax liabilities are adequate for all open audit years based on its assessment 
of many factors including past experience and interpretations of tax law. This assessment relies on estimates and assumptions and 
may involve a series of complex judgements about future events. To the extent that the final tax outcome of these matters is different 
than the amounts recorded, such differences will impact income tax expense in the period in which such determination is made.
3 Financial instruments – risk management
The Group and Company is exposed through its operations to the following financial risks:
• credit risk;
• fair value or cash flow interest rate risk;
• foreign exchange risk;
• other market price risk; and
• liquidity risk.
In common with all other businesses, the Group and Company is exposed to risks that arise from its use of financial instruments. 
This note describes the Group and Company’s objectives, policies and processes for managing those risks and the methods used 
to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.
There have been no substantial changes in the Group and Company’s exposure to financial instrument risks, its objectives, 
policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise 
stated in this note.
Principal financial instruments
The principal financial instruments used by the Group and Company, from which financial instrument risk arises, are as follows:
• trade and other receivables; 
• cash and cash equivalents;
• trade and other payables; and
• loans and borrowings. Governance Financial statements Strategic report
33 easyHotel plc Annual report and accounts 2015
3 Financial instruments – risk management (continued)
Principal financial instruments (continued)
A summary of the financial instruments held by category is provided below:
Group
2015
£
Group
2014
£
Company
2015
£
Company
2014
£
Financial assets
Cash and cash equivalents 22,635,566 24,263,974 — —
Trade and other receivables 19,316 661,535 — —
Related party loan — — 28,476,967 27,220,768
Total financial assets 22,654,882 24,925,509 28,476,967 27,220,768
Financial liabilities
Trade and other payables 1,723,064 1,225,036 68,542 231,057
Bank borrowings 7,200,000 7,200,000 — —
Total financial liabilities 8,923,064 8,425,036 68,542 231,057
Financial instruments measured at fair value
No financial instruments are measured at fair value; accordingly, no hierarchy information is presented.
General objectives, policies and processes
The Board has overall responsibility for the determination of the Group and Company’s financial instrument risk management 
objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating 
processes that ensure the effective implementation of the objectives and policies to the Group’s finance function. The Board receives 
reports from the Group’s finance function through which it reviews the effectiveness of the processes put in place and the appropriateness 
of the objectives and policies it sets.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group’s 
competitiveness and flexibility. Further details regarding these policies are set out below.
Credit risk
Credit risk is the risk of financial loss to the Group and Company if a customer or a counterparty to a financial instrument fails to 
meet its contractual obligations. On the basis that customers primarily prepay for hotel occupancy, and after carefully reviewing 
the financial performance and forecasts of counterparties to financial instruments as well as holding security over their trading 
accounts, the Group and Company’s exposure to credit risk from trade and other receivables is considered insignificant.
Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For banks and financial 
institutions, only independently rated parties with minimum rating “A” are accepted.
The Group and Company does not enter into derivatives to manage credit risk.
Market risk
Market risk arises from the Group and Company’s use of interest bearing, tradable and foreign currency financial instruments. 
It is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates 
(interest rate risk), foreign exchange rates (currency risk) or other market factors (other price risk).
The Company has no fair value and cash flow interest rate risk to disclose.
Fair value and cash flow interest rate risk
The Group is partially funded through bank borrowings. The Group obtained a bank borrowing facility during the period 
ended 30 September 2014 for the amount of £8.7m. Any amount borrowed bears interest at 1.92% above UK base rate. 
At 30 September 2015 £7.2m of the facility had been utilised. A 50 basis point increase in the interest rate would, all other 
variables kept constant, have decreased the profit before tax by £36,000 for the period ended 30 September 2015, while 
a 50 basis point decrease would have increased profit before tax by the same amount. easyHotel plc Annual report and accounts 2015 34
Financial statements
Notes forming part of the financial statements (continued)
for the year ended 30 September 2015
3 Financial instruments – risk management (continued)
Foreign exchange risk
Foreign exchange risk arises because the Group has franchisees located outside the UK whose functional currency is not the 
same as the functional currency of the Group, and the Group takes bookings on their behalf in foreign currencies. The Group 
maintains bank accounts in these currencies to provide a natural hedge.
Foreign exchange risk also arises when the Group enters into transactions denominated in a currency other than its functional 
currency. The volume of such transactions is not considered sufficient to warrant hedging the risk exposure.
The Group’s policy is, where possible, to settle liabilities denominated in foreign currency (primarily Euro) with the cash generated 
from its own operations in that currency.
The Group’s financial assets and financial liabilities were denominated in the following currencies:
EUR
£
USD
£
CHF
£
Total
£
30 September 2015
Financial assets
Cash and cash equivalents 3,480,432 144,167 131,487 3,756,086
Trade receivables — — — —
Total financial assets 3,480,432 144,167 131,487 3,756,086
Financial liabilities
Trade and other payables 707,445 28,623 93,404 829,472
Total financial liabilities 707,445 28,623 93,404 829,472
30 September 2014
Financial assets
Cash and cash equivalents 186,770 190,679 86,193 463,642
Trade receivables 661,536 — — 661,536
Total financial assets 848,306 190,679 86,193 1,125,178
Financial liabilities
Trade and other payables 453,833 56,307 119,105 629,245
Total financial liabilities 453,833 56,307 119,105 629,245
The effect of a 5% strengthening of the Pound Sterling at the reporting date on the foreign denominated financial instruments 
carried at that date would, all variables held constant, have resulted in a decrease in total comprehensive income for the period 
and decrease of net assets of £139,363 (30 September 2014: £24,780). A 5% weakening in the exchange rate would, on the 
same basis, have increased total comprehensive income and net assets by £139,363 (2014: £24,780).
The Company has no foreign exchange risk to disclose.
Liquidity risk
Liquidity risk arises from the Group and Company’s management of working capital and the finance charges and principal 
repayments on its debt instruments. It is the risk that the Group and Company will encounter difficulty in meeting its financial 
obligations as they fall due.
The Group and Company’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become 
due. To achieve this aim, the Group and Company finances its operations through a mix of equity and borrowings. The Group 
and Company’s objective is to provide funding for future growth and achieve a balance between continuity and flexibility through 
its bank facilities and intergroup loans. The Group has an £8.7m bank facility in place, of which £7.2m has been drawn.
The Board receives cash flow projections on a regular basis as well as information regarding cash balances. At the end of the 
financial year, these projections indicated that the Group and Company expected to have sufficient liquid resources to meet its 
obligations under all reasonably expected circumstances. Governance Financial statements Strategic report
35 easyHotel plc Annual report and accounts 2015
3 Financial instruments – risk management (continued)
Liquidity risk (continued)
The following table sets out the contractual maturities (representing undiscounted contractual cash flows) of financial liabilities:
Group
Up to 3
months
£
Between
3 and 12
months
£
Between
1 and 2
years
£
Between
2 and 5
years
£
Over
5 years
£
At 30 September 2015
Trade and other payables 1,723,064 — — — —
Bank borrowings 43,560 130,860 7,243,560 — —
Total 1,766,624 130,860 7,243,560 — —
At 30 September 2014
Trade and other payables 1,225,036 — — — —
Bank borrowings 43,560 130,860 174,240 7,243,560 —
Total 1,268,596 130,860 174,240 7,243,560 —
Company
Up to 3
months
£
Between
3 and 12
months
£
Between
1 and 2
years
£
Between
2 and 5
years
£
Over
5 years
£
At 30 September 2015
Trade and other payables 68,542 — — — —
Total 68,542 — — — —
At 30 September 2014
Trade and other payables 231,057 — — — —
Total 231,057 — — — —
More details in regard to the line items are included in the respective notes:
• Trade and payables – note 17.
Capital disclosures
The Group and Company monitors capital, which comprises all components of equity (i.e. share capital, share premium 
and retained earnings). 
The Group and Company’s objectives when maintaining capital are:
•  to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide returns for shareholders 
and benefits for other stakeholders; and
• to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
The Group and Company sets the amount of capital it requires in proportion to risk. The Group and Company manages its capital 
structure and makes adjustments to it in light of the changes in economic conditions and the risk characteristics of the underlying 
assets. In order to maintain or adjust the capital structure, the Group and Company may adjust the amount of dividends paid to 
shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt. easyHotel plc Annual report and accounts 2015 36
Financial statements
Notes forming part of the financial statements (continued)
for the year ended 30 September 2015
4 Revenue
2015
£
2014
£
Revenue arises from:
Owned hotel revenue 4,012,541 2,275,832
Franchisee hotel revenue* 1,505,617 1,245,819
Other income 23,234 22,297
5,541,392 3,543,948
* Includes accelerated fee release (note 5) of £269,500 (2014: £Nil).
5 Operating profit and adjusted EBITDA
2015
£
2014
£
The following have been included in arriving at profit before tax:
Foreign exchange (losses)/gains (151,902) (5,913)
Auditors’ remuneration includes:
Company audit fees (15,000) (11,500)
Subsidiary audit fees (26,000) (23,500)
Fees for other services (19,000) (198,500)
Total auditors’ remuneration (60,000) (233,500)
2015 fees for other services are for the six-month review and 2014 fees for other services are for other reporting accountant services 
rendered in connection with the listing of the shares on AIM, as well as financial due diligence services in connection with screening 
potential takeover targets, and half-year review.
2015
£
2014
£
Non-recurring costs include:
Director and Board changes:
Loss of office payments (168,509) —
Recruitment fees (120,864) —
Legal and other costs (56,068) —
Restructuring and listing costs:
IPO expenses — (238,339)
Abortive fees — (229,278)
Other exceptional costs — (87,882)
Accelerated initial fee release: 269,500 —
Total non-recurring costs (75,941) (555,499)
Accelerated fee release of £269,500 (2014: £Nil) relates to a previous exclusivity payment made by a franchisee, initially being 
recognised over a 20 year period. The exclusivity of this franchisee agreement has since lapsed and unrecognised portions have 
been recognised in the period ended 30 September 2015. Governance Financial statements Strategic report
37 easyHotel plc Annual report and accounts 2015
5 Operating profit and adjusted EBITDA (continued)
2015
£
2014
£
Hotel pre-opening and development costs include:
Rental income 21,160 —
Pre-opening operational costs (53,688) —
Total hotel pre-opening and development costs (32,528) —
Hotel pre-opening and development costs relate to expenses incurred or income received in running a property prior to 
commencement of trading as a hotel or otherwise.
Adjusted EBITDA is shown on the face of the consolidated statement of comprehensive income as it reflects the profits from underlying 
operations only and is the best indicator of easyHotel’s financial performance.
6 Staff and key management
The aggregate amounts payable to people employed by the Group (including Directors) during the year were as follows:
2015
£
2014
£
Wages and salaries 1,147,456 502,837
Social security costs 150,534 48,941
Loss of office payments 168,509 —
1,466,499 551,778
The average number of employees during the year was 30 (2014: 14).
Key management personnel compensation
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the 
activities of the Group, and are considered to be Directors of the Group. Amounts disclosed below include social security costs.
2015
£
2014
£
Aggregate emoluments 723,266 219,055
The remuneration to the highest paid Director amounted to £160,416 (2014: £124,940).
Details of remuneration by Director is provided on pages 18 and 19 of this report.
7 Segment information
The Group has two main reportable segments:
• Owned properties – This division is involved in hotel operations carried out in the Group’s owned hotels and properties.
•  Franchising – This division involves the Group’s franchised hotel operations, in connection with the licence of the Group’s 
brand name. easyHotel plc Annual report and accounts 2015 38
Financial statements
Notes forming part of the financial statements (continued)
for the year ended 30 September 2015
7 Segment information (continued)
Factors that management used to identify the Group’s reportable segments
These segments are considered on the basis of different products and services. They are managed separately because each 
business requires different management strategies and poses different business risks. 
Measurement of operating segment profit or loss, assets and liabilities
The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies.
The Group evaluates performance on the basis of profit or loss from operations before tax not including non-recurring losses.
Segment assets exclude tax assets. Segment liabilities exclude tax liabilities. Even though loans and borrowings arise from finance 
activities rather than operating activities, they are allocated to the segments based on relevant factors (e.g. funding requirements). 
Details are provided in the reconciliation from segment assets and liabilities to the Group position.
Owned
properties
£
Franchising
£
Total
£
30 September 2015
Revenue
Total revenue from external customers 4,034,479 1,506,913 5,541,392
Profit before taxation 1,760,913 880,211 2,641,124
Segment assets 41,363,530 2,263,480 43,627,010
Segment liabilities (8,685,621) (2,263,480) (10,949,101)
Other
Additions to non-current assets 2,533,877 — 2,533,877
Finance income 54,799 131,362 186,161
Depreciation (379,169) — (379,169)
30 September 2014
Revenue
Total revenue from external customers 2,295,862 1,248,086 3,543,948
Profit before taxation 957,938 1,016,796 1,974,734
Segment assets 40,401,459 2,372,488 42,773,947
Segment liabilities (8,378,933) (2,372,488) (10,751,421)
Other
Additions to non-current assets 7,436,176 — 7,436,176
Finance income 16,640 — 16,640
Depreciation (410,771) — (410,771) Governance Financial statements Strategic report
39 easyHotel plc Annual report and accounts 2015
7 Segment information (continued)
Measurement of operating segment profit or loss, assets and liabilities (continued)
Reconciliation of reportable segment revenues, profit before tax, assets and liabilities to the Group’s corresponding amounts 
is shown below:
2015
£
2014
£
Profit before income tax
Total profit of reportable segments 2,641,124 1,974,734
Corporate office expenses and interest (1,475,582) (846,660)
Director and Board changes (345,441) —
Hotel pre-opening and development costs (32,528) —
Restructuring and listing costs — (555,499)
Profit before tax per statement of comprehensive income 787,573 572,575
Assets
Total assets for reportable segments 43,627,010 42,773,947
Cash in Employee Benefit Trust 233,849 1,192,291
Corporation tax 6,908 —
Corporate office assets 153,115 16,297
Total assets per statement of financial position 44,020,882 43,982,535
Liabilities
Total liabilities for reportable segments (10,949,101) (10,751,421)
Corporation tax — (51,674)
Corporate office liabilities (501,444) (301,057)
Deferred tax liability (128,470) (113,755)
Total liabilities per statement of financial position (11,579,015) (11,217,907)
Geographical information
2015
£
2014
£
Revenue by location
United Kingdom 4,591,324 2,808,832
Europe 541,717 548,754
Rest of the world 408,351 186,362
5,541,392 3,543,948
Total non-current assets by location
United Kingdom 21,017,712 18,795,738
8 Finance income
Recognised in profit or loss:
2015
£
2014
£
Finance income
Interest income on financial assets measured at amortised cost 55,981 16,640
Interest income on amounts due from Benelux franchisee 131,362 —
Total finance income 187,343 16,640 easyHotel plc Annual report and accounts 2015 40
Financial statements
Notes forming part of the financial statements (continued)
for the year ended 30 September 2015
9 Finance expense
Recognised in profit or loss:
2015
£
2014
£
Finance expense
Interest expense on financial liabilities measured at amortised cost 179,292 126,822
Foreign exchange loss 151,502 —
Total finance expense 330,794 126,822
Foreign exchange loss for the period includes an unrealised loss of £136,940 on amounts due from a Benelux franchisee. 
On 2 October 2014, the Group deposited €3.3m with a Belgian notary to secure an easyHotel property in Brussels which is 
intended to be a franchised hotel. Interest on this deposit is payable to easyHotel at a rate of 10% per annum from 2 April 2015. 
The exchange rate applied at the balance sheet date is £1/€1.3509. This amount has subsequently been repaid (see note 26).
10 Income tax
2015
£
2014
£
Current tax expense
Current tax on profits for the year 92,209 106,872
Adjustment in respect of prior period 71,261 —
Total current tax 163,470 106,872
Deferred tax expense
Deferred tax charge for the year 155,492 —
Origination and reversal of temporary differences — 57,784
Adjustment in respect of prior period (130,434) —
Rate change (10,341) —
Total income tax expense 178,187 164,656
The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the 
United Kingdom applied to profits for the year are as follows:
2015
£
2014
£
Profit before tax 787,573 572,575
Expected tax charge based on the standard rate of United Kingdom
corporation tax at the domestic rate of 20.5% (2014: 22.00%) 161,452 125,967
Expenses not deductible for tax purposes 90,126 33,092
Prior year current tax adjustment 71,261 —
Prior year deferred tax adjustment (130,434) —
Effect of change in tax rate (14,218) 5,597
Total income tax expense 178,187 164,656 Governance Financial statements Strategic report
41 easyHotel plc Annual report and accounts 2015
11 Earnings per share
Basic and diluted earnings per ordinary share are calculated using the weighted average number of ordinary shares in issue during 
the financial period of 61,627,740 (2014: 34,262,499). The Company has no dilutive options, issued or outstanding, in relation to 
its share capital. Earnings consists of profit for the period attributable to the shareholders amounting to £609,386 (2014: £407,919).
12 Dividends
Final cash dividend of 0.33p per ordinary share (£202,538) is proposed by the Group during the period under review (2014: £Nil).
13 Property, plant and equipment
Group
Freehold
land and
building
core
£
Freehold
building
surface
finishes
£
Plant and
machinery
£
Furniture and
equipment
£
Total
£
Cost
At 30 September 2013 10,417,902 1,479,353 197,136 108,511 12,202,902
Additions 5,745,754 1,123,415 399,058 167,949 7,436,176
Disposals — — (197,136) — (197,136)
At 30 September 2014 16,163,656 2,602,768 399,058 276,460 19,441,942
Additions 2,088,843 280,491 71,190 93,353 2,533,877
Disposals — — — — —
At 30 September 2015 18,252,499 2,883,259 470,248 369,813 21,975,819
Accumulated depreciation
At 30 September 2013 175,494 184,489 11,500 61,086 432,569
Charge for the year 102,837 82,506 202,169 23,259 410,771
Disposals — — (197,136) — (197,136)
At 1 October 2014 278,331 266,995 16,533 84,345 646,204
Charge for the year 145,481 133,966 36,528 63,194 379,169
Disposals — — — — —
At 30 September 2015 423,812 400,961 53,061 147,539 1,025,373
Net book value
At 30 September 2013 10,242,408 1,294,864 185,636 47,425 11,770,333
At 30 September 2014 15,885,325 2,335,773 382,525 192,115 18,795,738
At 30 September 2015 17,828,687 2,482,298 417,187 222,274 20,950,446
The property, plant and equipment listed above are held as security against bank facilities referred to in note 18. easyHotel plc Annual report and accounts 2015 42
Financial statements
Notes forming part of the financial statements (continued)
for the year ended 30 September 2015
14 Intangible assets
Group
Website
 development
 costs
£
Total
£
Cost
At 30 September 2014 — —
Additions 75,097 75,097
At 30 September 2015 75,097 75,097
Accumulated amortisation
At 1 October 2014 — —
Amortisation charge for the year 7,831 7,831
At 30 September 2015 7,831 7,831
Net book value
At 30 September 2014 — —
At 30 September 2015 67,266 67,266
15 Trade and other receivables
Group
2015
£
Group
2014
£
Company
2015
£
Company
2014
£
Trade receivables 19,316 661,535 — —
Less: provision for impairment of trade receivables — — — —
Trade receivables – net 19,316 661,535 — —
Accrued income 5,245 4,208 — —
Total financial assets other than cash and cash equivalents 
classified as loans and receivables 24,561 665,743 — —
Prepayments 334,979 109,403 — 16,298
VAT receivables — 147,677 — 87,393
Other receivables 1,157 — — —
Total trade and other receivables 360,697 922,823 — 103,691
Classified as follows:
Current portion 360,697 922,823 — 103,691
There is no material difference between the net book value and the fair values of trade and other receivables due to their 
short-term nature.
An analysis of the Group’s trade and other receivables classified as financial assets by currency is provided in note 3.
Other classes of financial assets included within trade and other receivables do not contain impaired assets. Governance Financial statements Strategic report
43 easyHotel plc Annual report and accounts 2015
16 Cash and cash equivalents
For the purpose of the cash flow statement, cash and cash equivalents comprise the following balances with original maturity fewer 
than 90 days:
Group
2015
£
Group
2014
£
Company
2015
£
Company
2014
£
Cash at bank and in transit 20,192,768 24,263,974 — —
Restricted cash 2,442,798 — — —
Total cash and cash equivalents 22,635,566 24,263,974 — —
Restricted cash relates to the escrow referred to in note 9 and note 26. At the period end the Group could have exchanged the 
amount held in escrow for a bank guarantee.
An analysis of the Group’s cash by currency is provided in note 3.
17 Trade and other payables
Group
2015
£
Group
2014
£
Company
2015
£
Company
2014
£
Trade payables 572,274 246,225 — —
Other payables 33,836 19,027 — —
Amounts payable to franchisees in future 590,839 525,422 — —
Accruals 526,115 434,362 68,542 231,056
Total financial liabilities classified as financial liabilities 
measured as amortised cost 1,723,064 1,225,036 68,542 231,056
Other taxation and social security 528,276 509,276 — —
VAT payable 76,670 — — —
Bookings in advance 1,733,767 1,651,797 — —
Deferred income 188,767 466,369 — —
Total trade and other payables 4,250,544 3,852,478 68,542 231,056
Classified as follows:
Non-current portion 144,539 435,196 — —
Current portion 4,106,005 3,417,282 68,542 231,056
4,250,544 3,852,478 68,542 231,056
There is no material difference between the net book value and the fair values of current trade and other payables due to their 
short-term nature.
Maturity analysis of the financial liabilities, classified as financial liabilities measured at amortised cost, is as follows (the amounts 
shown are undiscounted and represent the contractual cash flows):
2015
£
2014
£
Up to three months 1,723,064 1,225,036
An analysis of the Group’s trade and payables classified as financial liabilities by currency is provided in note 3. easyHotel plc Annual report and accounts 2015 44
Financial statements
Notes forming part of the financial statements (continued)
for the year ended 30 September 2015
18 Bank borrowings
The carrying value and fair value of borrowings are as follows:
Group
2015
£
Group
2014
£
Company
2015
£
Company
2014
£
Non-current:
Bank borrowings 7,200,00 7,200,000 — —
The bank borrowings bear interest at a rate of UK base rate +1.92%. The total facility amounts to £8.7m and is repayable by 
December 2016.
The bank facilities are secured by a fixed charge over all of easyHotel UK Limited’s property, plant and equipment (note 13), 
as well as a floating charge over all other assets of easyHotel UK Limited, as per the bank’s debenture terms. 
19 Deferred tax
Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 20% (2014: 22.0%).
2015
£
2014
£
Group
At beginning of the year 113,755 55,971
Adjustment in respect of prior year (130,434) —
Recognised in comprehensive income 155,492 57,784
Rate change (10,341) —
At end of the year 128,472 113,755
Company
At beginning of the year — —
Recognised in comprehensive income — —
At end of the year — —
Deferred tax assets have been recognised in respect of all tax losses and other temporary differences giving rise to deferred tax 
assets where the Directors believe it is probable that these assets will be recovered.
The movements in deferred tax assets and liabilities during the period are shown below.
Details of the deferred tax liability/(asset) and amounts recognised in profit or loss are as follows:
Group
Accelerated
capital
allowances
£
Unutilised
tax
losses
£
Other
temporary
and
deductible
differences
£
Debited to
statement of
comprehensive
income
£
At 1 October 2013 57,486 (1,515) — 55,971
Comprehensive income debit/(credit) 62,335 (151) (4,400) 57,784
At 30 September 2014 119,821 (1,666) (4,400) 113,755
Impact of rate change on opening balance (10,892) 151 400 (10,341)
Prior year adjustment (135,949) 1,515 4,000 (130,434)
Comprehensive income debit/(credit) 155,492 — — 155,492
At 30 September 2015 128,472 — — 128,472 Governance Financial statements Strategic report
45 easyHotel plc Annual report and accounts 2015
19 Deferred tax (continued)
Company
Accelerated
capital
allowances
£
Unutilised
tax
losses
£
Other
temporary
and
deductible
differences
£
Debited to
statement of
comprehensive
income
£
At 1 October 2013
Comprehensive income debit — — — —
At 30 September 2014 — — — —
Comprehensive income debit — — — —
At 30 September 2015 — — — —
20 Share capital
Authorised
2015
Number
2014
Number
2015
£
2014
£
Ordinary shares of 1p each 62,500,000 62,500,000 625,000 625,000
Allotted, called up and fully paid
2015
Number
2014
Number
2015
£
2014
£
Ordinary shares of 1p each 62,500,000 62,500,000 625,000 625,000
During the year ended 30 September 2015 no ordinary shares were issued by the Group.
As at 30 September 2015 1,125,000 shares are held by the Employee Benefit Trust (2014: 112,500).
21 Reserves
The following describes the nature and purpose of each reserve within equity:
Reserve Description and purpose
Share premium Amount subscribed for share capital in excess of nominal value, net of share 
issue costs.
Merger reserve Difference between nominal value of shares issued to effect the merger 
and capital reserves of the subsidiary.
Other reserve Difference between the net assets of the subsidiary acquired and the nominal 
value of shares issued during the merger.
EBT reserve Shows the value of easyHotel plc shares held by the Employee Benefit Trust 
at cost.
Retained earnings/(accumulated losses) All other net gains and losses and transactions with owners (e.g. dividends) 
not recognised elsewhere.
22 Principal subsidiary
easyHotel UK Limited (a company incorporated in the United Kingdom) is a wholly owned subsidiary of easyHotel plc and is 
consolidated into the accounts of easyHotel plc. easyHotel plc Annual report and accounts 2015 46
Financial statements
Notes forming part of the financial statements (continued)
for the year ended 30 September 2015
23 Related party transaction
Trading transactions
During the year the Group entered into various transactions with related parties in the normal course of its business. Prices and terms 
of payment are approved by the Group’s management. All significant related party transactions and balances are listed below:
2015
£
2014
£
Amounts recognised in profit or loss
Royalties paid 129,955 163,546
Brand protection costs 15,272 —
Rent received — (20,030)
Outstanding balance at year end
Amount owed to related parties 17,339 —
Services between related parties were made at market related prices.
Amounts recognised in profit or loss in 2015 were as a result of transactions with easyGroup Limited.
The Group has not made any provision for bad or doubtful debts in respect of related party debtors nor has any guarantee been 
given or received regarding related party transactions.
A loan between easyGroup and easyHotel of £4,758,980 was capitalised upon admission onto the AIM exchange. The loan 
capitalisation shares were issued as fully paid and rank in full for all dividends and other distributions.
On 24 June 2014 easyHotel entered into a 50-year global Brand Licence Agreement with easyGroup Limited.
In December 2013 easyGroup Limited granted easyHotel a lease of the Croydon property for a term of 999 years. The lease was 
granted to easyHotel upon payment of a premium of £1,626,000 by easyHotel to easyGroup Limited and provides for a nominal 
initial rent of £25 per annum.
Further detail on remuneration paid to Directors is available in the Remuneration Report and in note 6.
24 Ultimate controlling party
easyGroup Holdings Limited, which is ultimately controlled by the Stelios Trust, a Cayman Islands trust established for the benefit 
of Sir Stelios Haji-Ioannou and others, was the principal shareholder at 30 September 2015 and held 55.7% of issued share capital.
In accordance with the relationship agreement with easyGroup Holdings Limited and its related parties, easyHotel plc is able to 
operate independently of easyGroup Holdings Limited and its associates and hence there is no controlling party.
In addition, easyGroup Holdings Limited agrees that where it is deemed to be acting in concert with any other related parties such 
that the aggregate shareholding of easyGroup Holdings Limited together with such other parties exceeds 49.0% of the voting rights 
attaching to the Company’s issued share capital, then easyGroup Holdings Limited shall (save with prior written consent of the 
Company) limit the exercise of the voting rights attaching to the ordinary shares held by it to such number of ordinary shares that, 
when aggregated with the number of ordinary shares held by the other members of the concert party, does not exceed 49.0% 
of the Company’s issued share capital.
25 Contingencies and commitments
A contingent liability exists in relation to a Section 106 planning contribution levy at the Company’s Old Street hotel. The Group is 
seeking retrospective planning consent for rooms already added to the third and fourth floors of the hotel. The total of the Section 106 
liability remains under discussion. The Group expects a decision to be made about the application during 2016.
A contingent liability exists in relation to a claim from a previous franchisee in South Africa. The total claim is for the amount 
of £113,194 and we are currently uncertain of the validity of this claim. We are currently seeking legal advice on this matter.
A commitment to purchase a property in central Manchester for £2,750,000 exists subject to conditions and obtaining relevant 
consents from local authorities. A non-refundable deposit of £50,000 was paid in order to secure exclusivity on the property purchase. Governance Financial statements Strategic report
47 easyHotel plc Annual report and accounts 2015
26 Events after the reporting date
On 22 October 2015, the Company received €3.3m relating to full repayment of a restricted cash amount held on escrow with 
a Belgium notary, used to secure a property in Brussels on behalf of its franchisee in that region.
On 9 November 2015, easyHotel signed a master development partnership with MAN Investments LLC (a UAE owned commercial 
and investment group), to develop easyHotels in the Middle East. MAN Investments will focus its new developments in the UAE 
and Oman, and the new easyHotels are expected to comprise purpose-built assets and conversions of existing hotel and/or office 
buildings. MAN Investments’ development programme targets an initial opening of 600 rooms by 2017. Following these openings, 
MAN Investments is targeting a further 1,000 rooms by the end of 2020. Each new hotel opening as part of this Master Development 
Plan will be subject to signing a franchise agreement.
There are no other matters that occurred between the reporting date and the date of approval of these financial statements that 
the Directors wish to draw attention to.
27 Share Option Scheme
The Company had, in the 2014 financial year, established a Share Option Scheme in order to incentivise Executives and employees 
of easyHotel. Options were granted over 1,625,000 ordinary shares during the 2014 financial period (representing 2.6% of the 
enlarged issued share capital) pursuant to the Share Option Scheme. All granted share options had lapsed or were forfeited as 
of 30 September 2015.
Movement in the number of share options outstanding during the year was as follows:
Number
of options
Exercise
price*
(pence)
Outstanding at 1 October 2014 1,625,000 103.85
Forfeited/lapsed during the period (1,625,000) 103.85
Outstanding 30 September 2015 nil n/a
Exercisable at 30 September 2015 nil n/a
The Group recognised total expense of £30,072 (2014: £80,891) related to the share options in 2015; this was determined using 
the Black Scholes model, using the following assumptions:
Share price at grant date 80p
Weighted average exercise price 103.85p
Expected volatility 30%
Risk-free rate 3%
Dividend yield 2.1%
Volatility 30%
*  Weighted average exercise price is calculated by weighting the applicable exercise price with the corresponding number of options granted. 1,000,000 options 
have been granted with an exercise price of 100p; a further 625,000 options have been granted with an exercise price of 110p.
It was the Company’s intention that all options granted upon admission and any other options granted in the future pursuant to 
the Share Option Scheme would be satisfied using ordinary shares purchased by the trustee of the Employee Benefit Trust from 
time to time in the market.
The options ordinarily vest on a straight line basis over a three-year period beginning with the date of grant and ending on the 
third anniversary of the grant. Options granted conditional upon admission would have vested in full on the first anniversary of 
the date of grant, provided that, as at that date, the option holder had not given or received notice of termination of his employment 
with easyHotel.
In the ordinary course of business, an option will normally only be exercisable to the extent it has fully vested and any applicable 
performance conditions have been satisfied or waived. Options shall lapse to the extent unexercised on the tenth anniversary of 
the date of grant or such earlier date as specified by the Board at the date of grant. Options granted conditional upon admission 
would have lapsed on the fifth anniversary of the date of grant. easyHotel plc Annual report and accounts 2015 48
Financial statements
Notes forming part of the financial statements (continued)
for the year ended 30 September 2015
28 Further notes to the Company statement of financial position
Investment in subsidiary
On 14 May 2014 the Company acquired 100% of the share capital of easyHotel UK Limited. easyHotel plc had an investment in 
easyHotel UK Limited (a wholly owned subsidiary) as at 30 September 2015 for an amount of £3,825,683 (2014: £3,825,683). 
This investment is held at cost less any reasonable provisions for impairment against the investment of which there are currently 
none. The investment eliminates out for the purpose of the consolidation.
easyHotel UK Limited is a company incorporated in England and Wales, with its principal place of business being 80 Old Street, 
London, United Kingdom.
Loan to related company
easyHotel plc had a loan due from easyHotel UK Limited (a wholly owned subsidiary) as at 30 September 2015 for an amount of 
£28,476,967 (2014: £27,220,768). The loan is unsecured and interest free and is repayable on demand. However, easyHotel plc 
does not expect to demand repayment of the loan within the next twelve months.
The loan eliminates out for the purpose of the consolidation.
Loan to Employee Benefit Trust
The Company made a loan of £1,300,000 (2014: £1,300,000) to the Employee Benefit Trust for the purchase of ordinary shares 
in easyHotel plc in accordance with provisions set out in the Share Option Scheme.
Pursuant to a trust deed dated 25 June 2014 and made between the Company and Sanne Fiduciary Services Limited, the Company 
established the Employee Benefit Trust. The Employee Benefit Trust is a discretionary trust which is structured so as to constitute a 
trust for the benefit of employees and former employees of easyHotel, their spouses, former spouses, civil partners, former civil 
partners and their dependants within the meaning of section 86 of the Inheritance Act 1984 and also to fall within the definition 
of an “employees’ share scheme” in section 1166 of the Companies Act.
It is intended that the Employee Benefit Trust will be funded by the Company to purchase ordinary shares from time to time in the 
market which will be used to satisfy all options and other rights granted under existing employees’ share plans or any other employees’ 
share plans established in the future.
In accordance with current institutional investor guidelines, the deed establishing the Employee Benefit Trust provides that the 
prior approval of shareholders must be obtained before more than 5% of the Company’s share capital at any one time may 
be held within it.
The loan is unsecured and interest free and is repayable on demand. However, easyHotel plc does not expect to demand repayment 
of the loan within the next twelve months.
As at 30 September 2015 1,125,000 shares are held by the Employee Benefit Trust (2014: 112,500).  
Design Portolio is committed to planting 
trees or every corporate communications 
project, in association with Trees or Cities.
Directors
Jonathan Stewart Lane OBE
(Non-Executive Chairman)
Guy Paul Cuthbert Parsons
(Chief Executive Officer)
Marc Andre Louis Vieilledent
(Chief Financial Officer)
Scott Somervaille Christie
(Non-Executive Director)
Secretary
Bernadette Barber
Registered office
easyHotel House 
80 Old Street 
London EC1V 9AZ
Company website
www.easyHotel.com
Nominated adviser and broker
Investec Bank plc
2 Gresham Street 
London EC2V 7QP 
United Kingdom
Principal legal advisers to the Company
Stephenson Harwood LLP
1 Finsbury Circus 
London EC2M 7SH 
United Kingdom
Auditors and reporting accountants
BDO LLP
55 Baker Street 
London W1U 7EU 
United Kingdom
Registrar
Capita Registrars Limited
The Registry 
34 Beckenham Road 
Beckenham 
Kent BR3 4TU 
United Kingdom
Financial PR 
Hudson Sandler
+44 (0) 20 7796 4133
Franchising enquiries
Paula Lacey
(Global Franchising Director)
paula.lacey@easyhotel.com 
www.easyHotel.com/franchising
Directors, secretary and advisers
This paper is FSC certified and completely Chlorine free 
along with being ISO 12647-2 certified. easyHotel House
80 Old Street
London
EC1V 9AZ 
easyHotel plc
easyHotel plc Annual report and accounts 2015
www.easyHotel.com