easyHotel plc
Annual report and accounts 2016
easyHotel plc Annual report and accounts 2016 Our portfolio*
Owned hotels
 Glasgow
 London Old Street
 London Croydon
Owned hotels 
(in development)
 Manchester
 Birmingham
 Liverpool
 Ipswich
 Barcelona
* As of 28 November 2016.
Franchised hotels
 Amsterdam City Centre South
 Amsterdam Arena Boulevard
 Basel
 Berlin
 Budapest
 Brussels
 The Hague
 Dubai
 Edinburgh
 Frankfurt
 London Earl’s Court
 London Heathrow
 London Paddington
 London South Kensington
 London Victoria
 London Luton
 Rotterdam
 Sofia
 Zurich
Franchised hotels 
(in development)
 Amsterdam Zaandam
 Lisbon
 Bernkastel-Kues
 Bur Dubai
 Reading
 Istanbul
 Bur Dubai
 Dubai
easyHotel has an estate of 22 hotels with 2,033 rooms comprising 19 franchised 
hotels (1,643 rooms) and three owned hotels (390 rooms). By early 2018, eleven additional 
hotels (five owned, six franchised) will open.
Strategic report
Revenue by property type
Owned £4.72m
Franchised £1.30m
Revenue by geography
UK £5.14m
EU £0.77m
ROW £0.11m
22  
hotels
2,033  
rooms
8  
countries
13  
cities 01 easyHotel plc Annual report and accounts 2016
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website: ir.easyHotel.com
Total system sales*
£21.32m
2016 21.32
2015 19.95
Total revenue
£6.02m
2016 6.02
2015 5.54
Adjusted EBITDA**
£1.55m
2016 1.55
2015 1.46
Earnings per share
1.4p
2016 1.4
2015 1.0
Strategic report
IFC About easyHotel
01 Highlights of the year
02 Chairman’s statement
03 Chief Executive Officer’s review
05 Strategy at the heart of our business model
06 Chief Financial Officer’s review
08 Risk management and principal risks
Governance
10 Board of Directors
11 Chairman’s corporate governance report
12 Directors’ report
13 Audit Committee report
14 Remuneration report
17 Statement of responsibilities
Financial statements
18 Independent auditors’ report
19 Consolidated statement 
of comprehensive income
20 Consolidated statement of financial position
21 Consolidated statement of cash flows
22 Consolidated statement of changes in equity
23 Company statement of financial position
24 Company statement of cash flows
25 Company statement of changes in equity
26 Notes forming part of the financial statements
48 Directors, Secretary and advisers
*  Total system sales is a non-statutory measure and represents the full amount that the customer pays for 
our owned and franchised hotels, including initial sign-on fees paid by franchisees to the Company.
**  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.
Business highlights
• Owned hotels like for like revenue growth: 13%.
• In addition to Liverpool (acquired in 2015), acquisitions in Manchester, 
Birmingham, Ipswich and Barcelona, with all five hotels (576 rooms) 
to be opened by early 2018.
• 1,135 new franchised rooms signed during the year.
Post-year-end developments
• On 1 7 October 2016, easyHotel completed the placing of 38,000,000 
new ordinary shares to raise £38.0m (before expenses). As a result, 
substantial shareholders were, post placing: easyGroup Holdings 
(34.6%), Icamap (29.3%), Polar Capital (8.0%), Hargreave Hale 
(5.6%) and Aberdeen Holdings (5.2%).
• New five-year facility of £12.0m bearing interest at Libor +2.50% 
refinancing previous £7 .2m bank facility.
• Opening of two franchised hotels: Brussels (107 rooms) 
and Amsterdam Arena Boulevard (131 rooms).
• New franchise agreement signed in Reading; the existing hotel 
will be converted into a 54-room easyHotel during 2017 .
• Planning permission granted for 204-room project in Barcelona 
and acquisition of the land completed. Strategic report
02 easyHotel plc Annual report and accounts 2016
Summary
• Trading in line with expectations and 
particularly strong across owned hotels
• Additional capital secured through 
share issue and bank finance
• Good progress made on 
implementing growth strategy
• Appropriately skilled team established
I am pleased to report that easyHotel 
continued to trade in line with the Board’s 
expectations during the year under review. 
Our owned hotels traded particularly 
strongly, with like for like revenues up by 
13% when compared with the prior year.
Strategy
The Group’s growth strategy focuses on the 
continued development and rollout of owned 
hotels, primarily in the UK, that the Board 
believes will offer sustained earnings per share 
enhancing returns. Alongside growth of the 
owned hotel portfolio, our franchise network 
will continue to be expanded mostly outside the 
UK, which increases our network without direct 
capital investment from the Group.
Our successful share placing since the year 
end, on 17 October 2016, raised £38.0m 
(£36.7m after expenses) of additional equity 
capital. Alongside the refinancing of an existing 
bank facility shortly after the year end, sufficient 
capital has been secured to finance further 
growth in the Group’s identified hotel pipeline 
in line with the Board’s strategy.
The operational foundations necessary to 
achieve the Group’s exciting ambitions are 
now firmly in place. Moreover, the Board is 
confident that these plans will be delivered 
consistent with the values that distinguish the 
easyHotel brand from other providers in the 
sector – we make things simple; we are always 
the best value for money; we do what we say; 
and we care for you.
Dividend
An interim dividend of 0.1 1p per ordinary 
share was paid on 1 July 2016. The Board is 
now pleased to recommend to shareholders 
the payment of a final dividend of 0.22p per 
share on the basis of our enlarged share capital. 
Subject to shareholder approval at our 
forthcoming AGM, this dividend will be 
paid on 16 February 2017 to shareholders 
on the register on 13 January 2017 .
Board and management team
This has been the first full financial year 
under the management of Guy Parsons, 
Chief Executive Officer, and Marc Vieilledent, 
Chief Financial Officer, both of whom were 
appointed in 2015. The Group has benefited 
from their substantial budget hotel sector 
experience, commercial skills, hard work 
and the changes they have made to strengthen 
the team, operational processes and controls. 
Their insight into the industry, complemented 
by the property, financial and plc experience 
of the Non-Executive Directors, means the 
Board’s collective knowledge provides a strong 
basis for sound governance of the business. 
I am particularly grateful to my co-Director, 
Scott Christie, who has continued to play 
an exceptional role during a period of 
considerable activity.
easyHotel has an excellent team working hard 
to advance this ambitious business. On behalf 
of the Board, I would like to thank them for all 
their efforts and continued support. 
Outlook
The outlook for the business is most 
encouraging. With the right team now in place, 
a broader shareholder base and significant 
institutional support, the Group has an exciting 
opportunity ahead. We will continue to update 
shareholders regularly on our progress.
Jonathan Lane OBE
Non-Executive Chairman
28 November 2016
Chairman’s statement
Jonathan Lane OBE
Non-Executive Chairman
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. 03 easyHotel plc Annual report and accounts 2016
Chief Executive Officer’s review
Strategy
2015/16 was a transformational year for 
easyHotel with excellent progress achieved.
High levels of staff engagement across both 
our owned and franchised hotels, together with 
improving customer satisfaction, have driven 
impressive like for like sales growth. This, together 
with our focus on reducing costs, improving 
efficiencies and maximising the returns from 
our investments, has produced a significant 
increase in our profits.
Our pipeline of new hotels is accelerating. 
The equity fundraise in October 2016 will 
enable us to develop and open more owned 
hotels and such investment in the brand and 
estate should encourage more franchisees 
to join the brand. With the experienced team 
we now have in place, we are in an excellent 
position to expand the easyHotel brand and 
deliver improving returns for our shareholders.
Trading review
In 2015/16 total system sales grew by 6.8% 
to £21.3m, and our Company revenues by 
8.7% to £6.0m. This was achieved by an increase 
in like for like owned hotel sales of 13% and the 
maturing of Croydon and Frankfurt.
Occupancy for owned and franchised hotels 
was 76.2% (2015: 75.0%).
Our strong sales performance led to a 6.5% 
increase in adjusted EBITDA to £1.55m. 
Following the sale of the restaurant asset 
at our Liverpool development site, our profit 
before tax increased by 38.4% to £1.1m.
Owned hotels
Despite a softening UK hotel market, 
particularly in London, revenue grew on a like 
for like basis by 13% as a result of the 
new revenue management and dynamic 
pricing strategy implemented during the year. 
This, together with a decision to start selling 
a limited allocation of rooms via selected 
online travel agencies (OTAs), resulted in all 
three owned hotels significantly outperforming 
their competitive set (as measured by STR) from 
November 2015 onwards.
As previously announced, the retrospective 
planning permission submission for 78 of the 
162 rooms at the Old Street hotel was refused 
by Islington Council. A formal appeal will be 
lodged in December 2016 and a decision 
is expected during 2017 . The remaining 
84 rooms at Old Street, which already have 
planning permission in place, are unaffected.
Franchise partners
Like for like revenue at our franchised 
hotels increased by 1% during the financial 
year, reflecting the unique market conditions 
in which the hotels operate. The hotels in 
Continental Europe performed particularly 
strongly whereas the UK hotels traded in line 
with the UK market.
There were 1 7 franchise hotels operating at the 
end of the financial year, following the termination 
of the franchise agreement in Prague.
Market outlook
The UK hotel market performed strongly in the 
post-Brexit period, as a result of weaker Sterling 
(vs. the US Dollar and Euro) resulting in an 
increase in staycations and in-bound tourism.
The Board remains confident that despite any 
uncertainties surrounding the imminent Brexit 
negotiations, the easyHotel brand will continue 
to outperform the hotel sector as consumers 
seek out the best value for money.
easyHotel Brussels
easyHotel Amsterdam Arena
2016 Q1
easyHotel Birmingham
easyHotel Manchester
easyHotel Amsterdam 
Zaandam
easyHotel Ipswich
easyHotel Lisbon
easyHotel Liverpool easyHotel Barcelona
easyHotel Bur Dubai
easyHotel Bernkastel-Kues
easyHotel Istanbul
easyHotel Reading
Q2 Q3 2017/18
Development pipeline
Summary
• Strategy implementation is on track
• Positive trading continues
• Significantly accelerated pipeline 
in place to deliver long-term 
shareholder value 
Q4 2016/17
Guy Parsons
Chief Executive Officer Strategic report
04 easyHotel plc Annual report and accounts 2016
Development review
Development of owned hotels
We have a growing pipeline of hotels 
under development. 
We completed the acquisition of the 
Manchester hotel in January 2016 (which 
had originally been purchased subject to 
planning permission) and both the hotels 
in Manchester and Liverpool are under 
construction and will open in early 2017 .
In July 2016, we sold the A3 restaurant space 
at 47 Castle Street in Liverpool under a 125-year 
lease agreement as part of our strategy to recycle 
capital through the disposal of surplus assets. 
The money raised will be used to help fund the 
further development of our owned hotel estate. 
During the year, we completed the acquisition 
of three new hotel sites. The first is on John Bright 
Street, Birmingham, acquired under a 125-year 
lease. The 84-room hotel will open in early 201 7 . 
The second, acquired on a freehold basis, is on 
Northgate Street, Ipswich. The 94-room hotel 
will open in mid 2017 . Finally, we completed 
the acquisition of a site on Gran Via, the main 
avenue of L’Hospitalet de Llobregat, Barcelona, 
in November 2016. A new build 204-room 
hotel will open in early 2018.
We now have 576 owned hotel rooms under 
various stages of development and are confident 
that the £36.7m (net of expenses) raised by the 
equity placing in October 2016, together with 
our increased bank facility of £12.0m, will enable 
us to continue opening owned hotels in excellent 
locations that will make a significant contribution 
to our profitability.
We look forward to updating investors on our 
acquisition pipeline in due course.
Development of franchised hotels
There are 951 franchised rooms currently 
under development. In addition to the hotel 
in Brussels, which opened in October 2016, 
and the development agreement we signed 
with MAN Investments LLC (which will open 
its first 300-room hotel in Bur Dubai in 2017), 
we announced the development of hotels at 
Amsterdam Arena (opened in November 2016), 
Amsterdam Zaandam, Istanbul, Lisbon, 
Bernkastel-Kues and Reading. 
These hotel openings will enhance our position 
as the super budget hotel brand of scale, in the 
UK, Europe and the Middle East.
Central operations
During the year, we have made some 
significant senior management changes 
to ensure that we have the talent in place 
to deliver our growth plans. 
The new team has already added significant 
value to our business. We have, for example, 
renegotiated our contract-cleaning agreement 
giving us a reduced (and fixed) cost, irrespective 
of increases to the living wage. We have 
renegotiated, and reduced, our architect, 
project management and construction costs, 
which will enhance future returns for the 
business. This work is ongoing and we are 
confident that further efficiencies will be found.
With such an exciting future, it is perhaps not 
surprising that staff engagement levels are at 
industry-leading levels. At the year end the 
Group employed 45 staff (2015: 30). 
Brand
easyHotel’s core strength is our ability to leverage 
the recognised and trusted “easy” brand.
We know that improving customer 
recommendation is a priority for our future 
success and finding out what our customers 
think is central to our business. Our operations 
teams focus on customer feedback via social 
media sites in general, and TripAdvisor in 
particular, and our hotels are ranked against 
a competitive set on a monthly basis. This relentless 
focus on customer feedback is already paying off 
and will remain an integral part of the way we 
do things in the future.
Revenue management and distribution
A historic feature of our distribution strategy 
was to sell rooms directly through easyHotel.com 
only. Although we are now selling a controlled 
number of rooms via OTAs, we remain focused on 
driving sales via our own website. Our marketing 
campaigns during the last twelve months have 
been further refined to maximise the traffic to our 
website and improve the return on our marketing 
investment. With a new hotel management system 
being introduced in 2016/17 , we will be in an 
excellent position to make further improvements 
to our customers’ web journey, as well as introduce 
a more dynamic pricing strategy to further drive 
RevPAR growth.
By offering our customers a good night’s sleep 
at a super price and a quick and easy way to make 
a booking, we believe that we will attract new 
customers and encourage significant repeat visits.
Outlook
We are on track to deliver the development 
plans we announced in September 2016.
2015/16 was a transformational year for 
easyHotel, with excellent operational progress 
made across the business and a significant 
acceleration of both our owned and franchised 
hotel development pipelines.
The Board remains confident that by exploiting 
the strength of the brand, easyHotel will continue 
to outperform the budget hotel sector as 
consumers seek out the best value for money.
With the experienced team we now have 
in place and the proceeds of our recent 
fundraising, we are in an excellent position 
to expand the easyHotel brand and deliver 
improving returns for our shareholders.
Guy Parsons
Chief Executive Officer
28 November 2016
UK market opportunity
The budget sector in the UK is forecast to continue growing for the foreseeable future.
Total hotel market estimated* at:
2015
(000)
2020
(000)
2030
(000)
Share
2015
%
2020
%
2030
%
Branded budget 145 180 215 19 23 25
All other 602 600 635 81 77 75
UK market 747 780 850 100 100 100
* Melvin Gold Consulting.
Chief Executive Officer’s review 
continued 05 easyHotel plc Annual report and accounts 2016
Delivering value
Delivering value
Strategy at the heart  
of our business model
Customer  
understanding
A market  
opportunity
Building hotels  
where people  
want to stay
Maximising  
revenues
Minimising  
costs
Our Board believes that our stated strategy continues 
to be the best way to achieve the Group’s growth targets.
Our strategy 
Our business model:
 Customer understanding
• Budget hotels are chosen because of location 
and price – consumers choose them because 
they’re close to where they need to be.
• Price sensitivity is high, but absolute price 
awareness is low.
• Customer needs are relatively simple: 
a great bed, well trained, friendly staff 
and well designed rooms. A brand that 
is easy and simple to do business with.
 A market opportunity
• The budget sector has grown faster than any 
other sector in the UK hotel industry for the 
last 30 years, and this is set to continue.
  Building hotels where people 
want to stay
• We use a combination of owned 
and franchised hotels.
 Maximising revenues
• We don’t have restaurants in our hotels – we use 
every available space to sell bedrooms. We offer 
a consistent, good quality room at a low price. 
As a result, our occupancies are high.
 Minimising costs
• Our experienced management teams keep 
our staff levels to a minimum and outsource 
our cleaning to specialists. Our operating 
margins are high.
• 8,000 room opportunity in the UK, 4,000 rooms 
in Europe in gateway destinations.
• A targeted 15% return on capital employed 
(ROCE) (unless specific locations offer superior 
risk-adjusted returns in the longer term).
• With a strategy to dispose of non-core assets 
in place, maximising the capital available 
to build bedrooms.
• Maximising revenues via the revenue 
management and eCommerce strategy.
• Minimising costs with a relentless focus on 
removing waste and improving efficiency.
• Focusing on our customers to increase 
repeat bookings.
• Having the right team and expertise in 
place to deliver our future growth.
• 11,000 room opportunity in Europe and 
the Middle East plus 4,000 rooms in the UK. 
With further opportunities in Africa, the Far East, 
Australia, North and South America.
• Building brand presence without 
capital investment.
• Delivering a high incremental margin 
and increasing Group ROCE.
Speeding up owned 
hotel development
Ongoing professionalisation 
of the business
Accelerating our franchise 
hotel rollout 
1 2 3 Strategic report
06 easyHotel plc Annual report and accounts 2016
Revenue
Total revenue increased by 8.7% to £6.02m 
(2015: £5.54m) mainly driven by the strong 
performance of our owned hotels which 
significantly outperformed the market.
Revenue from our owned hotels was up by 
17 .2% to £4.73m (2015: £4.03m) and like for 
like growth was 13%. Average occupancy was 
82.1% and average daily rate (ADR) per room 
was £40.0 during the year.
Revenue from our franchised hotels was 
£1.30m (2015: £1.51m), including a one-off 
fee of £0.05m relating to the termination of 
the Prague franchise agreement. Like for like 
growth in franchised hotels revenue was 1%. 
Average occupancy was 74.5% and ADR 
per room was £42.6 during the year.
Adjusted EBITDA
Adjusted EBITDA (before one-off items) 
increased by 6.5% to £1.55m (2015: £1.46m). 
Our owned and franchised businesses 
contributed an improvement of £0.31m 
to £3.21m (2015: £2.90m), partly offset 
by our corporate office expenses increasing 
by £0.22m to £1.66m (2015: £1.44m) on 
the back of continued investment in our 
team to deliver our ambitious growth plans.
Chief Financial Officer’s review
In a period of management 
change and development, 
we have improved our financial 
performance and secured 
financing for our future growth.
Profit before tax
Profit before tax increased by 38.4% to £1.09m 
(2015: £0.79m).
In addition to the increase in adjusted EBITDA, 
the change in profit before tax was mainly 
driven by:
• 
A capital gain on the Liverpool ground floor 
disposal for £0.28m (2015: £Nil).
• 
A share based payments expense of £0.16m 
(2015: £0.03m).
• 
Pre-opening costs of £0.09m (2015: £0.03m), 
following acquisitions of various properties 
during the financial year. The Board anticipates 
such pre-opening costs rising as the development 
pipeline progresses.
• 
 IT and other restructuring costs of £0.12m 
(2015: £Nil), relating primarily to preliminary 
fees for a new hotel management system.
• 
 Depreciation and amortisation of £0.45m 
(2015: £0.39m).
• 
 A finance income of £0.25m (2015: £0.19m) 
including interest on cash deposits and foreign 
exchange gains and a finance expense of 
£0.20m (2015: £0.33m) related to interest 
on borrowings were incurred during the year.
Marc Vieilledent
Chief Financial Officer
easyHotel Brussels 
opened October 2016.
Summary
• Revenue: £6.02m
• Adjusted EBITDA: £1.55m
• Cash available at 
30 September 2016: £13.66m 
• Total proposed dividend of 0.33p 
per share 07 easyHotel plc Annual report and accounts 2016
Taxation
The effective tax charge for the period 
was 20% (2015: 23%). 
Earnings per share and dividend
Profit for the year was £0.88m (2015: £0.61m) 
giving rise to a basic earnings per share of 1.4p 
(2015: 1.0p).
In line with the Company’s stated dividend 
policy, that dividends of between 30%–50% 
of post-tax profits should be paid, the Board is 
proposing a final dividend of 0.22p per ordinary 
share, or a total dividend for the financial year 
of 0.33p (2015: 0.33p) including the interim 
dividend of 0.1 1p (2015: £Nil) paid in June 2016.
Cash flow and balance sheet
Net cash generated from operations was 
£0.85m (2015: £1.93m) and net cash used in 
investing activities was £9.65m (2015: £2.59m), 
reflecting the development costs of our five 
committed projects less the disposal of the 
A3 restaurant space at the Liverpool property, 
with a total net use of cash of £9.07m 
(2015: £1.63m).
The Group ended the financial year with net 
assets of £33.21m (2015: £32.44m), of which 
£13.66m comprised cash and cash equivalents 
(2015: £22.64m).
As at 30 September 2016, 1,125,000 ordinary 
shares in the Company were held by the 
Employee Benefit Trust (2015: 1,125,000).
Post-balance sheet events
On 17 October 2016, the Group completed 
the placing of 38,000,000 new ordinary shares 
of 1p each in the capital of the Company to 
raise £38.0m (£36.7m after expenses).
In November 2016, the Group completed 
the refinancing of its existing £7 .2m bank 
facility with a new five-year facility due 2021 
of £12.0m amortising at 3% per annum 
and bearing interest at Libor +2.50%.
Financial highlights
Total revenue
£6.02m
2016 6.02
2015 5.54
Adjusted EBITDA
£1.55m
2016 1.55
2015 1.46
Earnings per share
1.4p
2016 1.4
2015 1.0
easyHotel Amsterdam Arena 
opened November 2016. Strategic report
08 easyHotel plc Annual report and accounts 2016
Risk management 
and principal risks
  Organisational risks
Risk How we manage the risk
Change of risk 
during the year Reason for change
Failure to extend the owned 
and franchised hotel portfolio 
in line with strategic targets
Our executive and wider management teams 
have been strengthened this year and have 
extensive sector experience. They are supported 
by specialist external advisers to ensure that the 
Group maximises its potential for growth in its 
owned and franchised portfolio.
Decrease in risk Significant pipeline of owned 
and franchised hotels currently 
in place versus the prior year.
Brand reputational damage The Group operates to defined brand standards 
and ensures their maintenance through any new 
property developments and by using KPIs and good 
communications on a day-to-day operational basis. 
Close co-operation with easyGroup on intellectual 
property matters ensures the “easy” brand is 
actively protected.
No change in risk —
Failure to raise  
capital necessary 
for future development
The Group has current debt capacity and net 
cash available for its medium-term development 
aspirations and will continue to work with advisers 
to meet its long-term needs.
Decrease in risk £38m (before expenses) 
capital raised, as well as 
a new £12m bank facility.
Significant political or 
economic changes adversely 
impact the business
The business is geographically diverse and focused 
on locations with strong track records. The balance 
of franchised and owned hotels in the portfolio also 
reduces the direct risk. Industry data and trends are 
actively monitored so that appropriate pricing, cost 
and property investment adjustments can be made.
Increase in risk Brexit uncertainty being 
mitigated by predominant 
focus on UK owned 
hotel development.
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 
and the Board keep the Group’s risk register. The actions proposed and taken by management to mitigate risk and to reduce 
the likelihood and impact of the risks faced by the business are reviewed regularly and are deemed satisfactory.
The principal risks and uncertainties of the business and how they are managed are set out in the table below. 09 easyHotel plc Annual report and accounts 2016
  Operational risks
Risk How we manage the risk
Change of risk 
during the year Reason for change
Disaster incidents that 
could seriously impact 
the business such as fire, 
flood or terrorist attack
A comprehensive disaster recovery plan with back-up 
processes and facilities to ensure the business can 
continue to operate with minimal interruption has 
been implemented and is under ongoing testing 
and improvement. This combines with regular reviews 
of our insurance to ensure adequate protection in 
the event of a disaster incident.
Decrease in risk Various disaster recovery 
measures implemented 
including a back-up office 
location in Croydon.
Failure of information 
systems, cyber attack 
or data protection breach
The Group has specialist service providers which 
advise and support the business on its IT security. 
Staff training, data back-up, penetration testing 
and other security measures are also in place.
No change in risk —
Loss of key people compromises 
operational ability
We have strengthened our team at all levels this 
year and are introducing clear succession plans, 
written procedures and training to ensure knowledge 
is appropriately shared and protected.
Decrease in risk Outsourced elements 
of finance and ongoing 
automation will help to reduce 
key person dependencies.
Failure of a key supplier Our business is reliant on a few key suppliers which 
provide services such as laundry, housekeeping 
and reservations systems. Due diligence to reduce 
the likelihood of supplier failure, and contingency plans 
to ensure operations can continue to mitigate this risk.
No change in risk —
Health and safety standards 
are compromised
Risk assessments are completed, documented 
and regularly reviewed for each location. Staff training 
(both during induction and on an ongoing basis), the 
appointment of fire marshals and trained first aiders 
and the maintenance of appropriate accident reporting 
procedures safeguard our staff and guests.
Decrease in risk Significant improvements to 
health and safety measures 
have been implemented 
during the year, with ongoing 
reviews carried out.
See also note 3 to the financial statements for further information on financial risks.
This Strategic Report has been approved and authorised for issue by the Board of Directors on 28 November 2016 and was signed on its behalf by:
Marc Vieilledent
Chief Financial Officer
28 November 2016 10 easyHotel plc Annual report and accounts 2016
Governance
Board of Directors
Guy Parsons
Chief Executive Officer
Guy has over 25 years of hotel 
and leisure industry experience. 
Having worked at divisional board 
level for Accor UK and Whitbread, 
he joined the board of Travelodge 
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 
easyHotel’s Chief Executive 
Officer 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 SA, where he 
worked until 2013, with his most 
recent role being executive vice 
president of asset management. 
Marc has previously served as a 
non-executive director of the French 
shopping centre real estate owner 
Immochan SA.
Marc was appointed as 
easyHotel’s Chief Financial 
Officer in May 2015.
Jonathan Lane OBE
Non-Executive Chairman
Jonathan, a Chartered Surveyor, 
was non-executive chairman 
of Shaftesbury PLC, a FTSE 250 
real estate investment trust, until 
his retirement in September 2016. 
Until 201 1 he was Shaftesbury’s 
chief executive. 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
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.
The Company currently has four Directors, of whom two are independent Non-Executives.  11 easyHotel plc Annual report and accounts 2016
Chairman’s corporate 
governance report
The Board is committed to effective 
corporate governance as the basis for 
delivering long-term value growth and 
for meeting shareholder expectations 
for proper leadership and oversight 
of the business. Accordingly the Board 
has adopted processes which reflect the 
principles of the UK Corporate Governance 
Code and QCA Corporate Governance 
Guidelines for Smaller Quoted Companies. 
Not all of the provisions of the UK 
Corporate Governance Code are 
appropriate to easyHotel and accordingly 
the Company does not comply fully 
with the Code, electing instead to adopt 
practices that are proportional and reflect 
the Company’s culture and circumstances, 
including size, complexity and risk. As the 
business continues to develop, those 
practices will evolve and, 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 10. 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 
summarised on page 5 and elsewhere in the 
Strategic Report.
Supported by the Company Secretary, the 
Board meets monthly and its agendas are set 
to focus on strategy and key decisions and to 
enable proper monitoring and oversight of the 
business to be undertaken. There is a schedule 
of matters which are reserved for 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.
The Board has formally evaluated its performance 
and effectiveness. A number of improvements 
were suggested as a result of this exercise and 
appropriate changes will be implemented 
accordingly. However, the overall conclusion 
was that, as a unit, the Board operates effectively.
Under its leadership, the business has made 
significant progress during the year. A key 
reason for this success has been the Board’s 
focus on ensuring the Company employs the 
right people and has access to the necessary 
skills and resources to deliver its objectives.
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 13.
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 14 to 16. Approval of the 
Remuneration Report will be sought at the 
Company’s Annual General Meeting (AGM).
The Board has chosen not to establish a 
nomination committee and instead deals 
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 the 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.
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
17 meetings held
Audit
Committee
attendance
3 meetings held
Remuneration
Committee
attendance
7 meetings held
Scott Christie 17 3 7
Jonathan Lane OBE 16 3 7
Guy Parsons 17 — —
Marc Vieilledent 17 — — 12 easyHotel plc Annual report and accounts 2016
Governance
Directors’ report
The Directors are pleased to submit their 
report on easyHotel plc for the financial 
year ended 30 September 2016.
Review of the business
The Group is required to set out a fair review 
of the business and future developments of 
the Group during the financial year ended 
30 September 2016 and the position of the 
Group at the year end. This information can 
be found in the Chairman’s Statement on page 2, 
the Chief Executive Officer’s Review on pages 3 
to 4 and the Chief Financial Officer’s Review 
on pages 6 to 7 and in the rest of the report.
Post-year-end developments
In October 2016, the Company successfully 
issued 38m new ordinary shares for cash 
pursuant to a non-pre-emptive placing. After 
expenses, the net proceeds of this share issue 
were £36.7m.
In addition, the Group also entered into a new 
£12.0m secured bank facility in November 2016. 
This facility replaces the Group’s existing £7 .2m 
loan. Two new franchised hotels opened: Brussels 
(107 rooms) and Amsterdam Arena Boulevard 
(131 rooms). The 204-room project in Barcelona 
was granted permission and the acquisition 
of land completed.
Dividends
A final dividend of 0.22p per ordinary share 
has been recommended by the Directors for 
the financial year ended 30 September 2016. 
Subject to approval at the Company’s Annual 
General Meeting, the dividend will be paid on 
16 February 2017 to all shareholders on the 
register on 13 January 2017 . This is in addition 
to the interim dividend of 0.1 1p per share 
already paid.
Charitable and political donations
There were no charitable or political 
donations made during the financial 
year ended 30 September 2016.
Directors’ indemnity provisions
As permitted by the Articles of Association, 
the Directors have the benefit of an indemnity 
which is a qualifying third party indemnity 
provision as defined by s236 of the Companies 
Act 2006. The indemnity was in force throughout 
the financial period and at the date of approval 
of the financial statements. The Group also 
purchased and maintained throughout the 
financial period Directors’ and Officers’ liability 
insurance in respect of itself and its Directors.
Share purchases
During the year ended 30 September 2015 
the Employee Benefit Trust spent £1.0m on 
repurchase of 1,012,500 shares in easyHotel plc.
Auditors
BDO LLP have expressed their willingness to 
continue in office as auditors and a resolution 
to re-appoint BDO LLP will be proposed at the 
forthcoming AGM.
Corporate governance statement
The Chairman’s Corporate Governance Report, 
which describes the practices and responsibilities 
of the Board and its Committees, can be found 
on page 1 1.
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 auditors for the purposes 
of their audit and to establish that the auditors 
are aware of that information. The Directors 
are not aware of any relevant information 
of which the auditors are unaware.
This Directors’ Report has been approved and 
authorised for issue by the Board of Directors 
on 28 November 2016 and was signed on its 
behalf by:
Marc Vieilledent
Director
Directors
The Directors who served during the year ended 30 September 2016 were as follows:
 
Jonathan Lane OBE Non-Executive Chairman
Scott Christie Non-Executive Director
Guy Parsons Chief Executive Officer
Marc Vieilledent Chief Financial Officer  13 easyHotel plc Annual report and accounts 2016
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 2016. The Group’s 
external auditors and Executive Directors 
attend the Committee’s meetings by invitation 
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 
and these areas are reported on page 8.
The Audit Committee’s terms of reference are 
available on the Group website.
Financial statements
The Committee reviewed both the annual and 
half-year financial statements. The audit plan, 
including its scope, was discussed with the 
external auditors, as were 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; and 
management responses and materiality 
judgements were examined and following 
consideration and discussion were 
considered 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 the independence of the firm, 
including that of its audit staff, audit manager 
and audit partner, is reviewed and properly 
assessed. The Committee has discussed and 
appropriately challenged such issues with the 
audit partner and deemed the responses 
to be satisfactory. 
During the period, BDO’s audit partner 
was rotated. The Committee has considered 
whether an audit tender should be 
recommended to the Board but concluded 
that a recommendation at this time for the 
re-appointment of BDO LLP as the Company’s 
auditors was in the Company’s best interests. 
The Committee will continue to keep matters 
under review. 14 easyHotel plc Annual report and accounts 2016
Governance
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, the Board 
is committed to transparency of its 
remuneration arrangements and, 
accordingly, an 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 the Company’s Non-Executive Directors, 
Scott Christie, who chairs the Committee, 
and Jonathan Lane OBE. 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 Committee seeks 
support from external advisers as necessary 
and, during the year, Deloitte continued to 
advise the Committee on its review of certain 
elements of the Group’s incentive arrangements. 
No other services were provided by Deloitte 
to the Group during the year.
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. 
During the year ended 30 September 2016, 
the Committee met seven times.
The Remuneration Committee’s terms 
of reference are available on the 
Company’s website.
Remuneration policy
The objective of the Group’s remuneration 
policy is to ensure that the overall remuneration 
of the 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 the 
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, 
a 5% basic salary increase was awarded to 
the Chief Financial Officer. No increase was 
awarded to the Chief Executive Officer as this 
was not deemed appropriate given the recency 
of his appointment. 
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, described further below, are 
intended to represent a significant proportion 
of each Executive Director’s overall remuneration. 
Annual bonus
The annual bonus payable for 2016 was based 
upon achievement of EBITDA targets together 
with new hotel acquisitions and sign-on of new 
franchisees. Details of the payments made are 
provided on page 16.
When reviewing the basis for annual bonus 
awards for 201 7 , the Committee has determined 
that, at this stage in the Group’s development, 
an appropriate emphasis for the performance 
measures will be delivery of EBITDA and PBT 
targets and measurable pipeline growth in both 
the owned and franchised hotel elements of 
the Group’s portfolio. For on-target performance, 
Executive Directors 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.
Performance Share Plan
The Committee‘s review of the Company’s 
long-term incentive strategy was concluded 
during the year. Upon the recommendation 
of the Committee, the Board established the 
easyHotel 2015 Performance Share Plan. This 
plan enables conditional share awards to be 
granted 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 
going forward.
The first awards under the 2015 Performance 
Share Plan were granted in January 2016. 
Initial awards to each of the Executive Directors 
were equivalent (based on the average share 
price of 89.3p per share for the five business 
days immediately preceding the date of grant) 
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.   15 easyHotel plc Annual report and accounts 2016
The performance criteria set were designed to build momentum into the Company’s development programme whilst also delivering strong financial 
returns. The performance criteria for the initial awards, based on performance over the 2016, 2017 and 2018 financial years, are summarised 
in the table below.
Weighting
30% 30% 20% 10% 10%
Shareholder returns Rooms Profitability
Vesting 
of element 
on straight 
line basis
Absolute
TSR
Cumulative
owned
rooms
Cumulative
franchised
rooms
ROCE on
mature
owned
properties
Group net
EBITDA
margin
Performance is below threshold level Nil
Threshold level performance is achieved 30%
Performance is on target 65%
Performance achieves or exceeds stretch target 100%
At the time of the Company’s issue of new capital (completed in October 2016), the Remuneration Committee undertook that, having generated 
momentum in the Company’s development programme, future awards under the plan would be subject, predominantly (75% minimum), to earnings 
per share performance targets and that future awards would be subject to shareholder approval.
The Committee has determined that, provided shareholder approval is given at the forthcoming Annual General Meeting, share option awards 
up to 100% of base salary shall be made to Guy Parsons, Marc Vieilledent and other selected senior managers, subject to performance conditions 
predominantly based on EPS for the 2017 , 2018 and 2019 financial years. The value of awards will be determined at the date of grant by reference 
to the average share price for the five business days immediately preceding the date on which the award is made and, provided shareholder approval 
of this proposal is granted at the forthcoming Annual General Meeting, it is anticipated that these awards will be made shortly thereafter.
Executive Directors’ service contracts
The Executive Directors have service contracts setting out the terms of their employment. In each case, the contract may be terminated on 
six months’ notice.
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, annual fees, the time commitment expected for the role and that 
the appointment may be terminated by either party giving one month’s prior written notice. 16 easyHotel plc Annual report and accounts 2016
Governance
Remuneration report continued
Directors’ remuneration (in £) (audited) 
To aid shareholders’ understanding, in the table below we provide the remuneration for each Director.
Year ended 30 September 2016
Basic 
salary
£
Payment in
lieu of
pension
£
Bonuses
£
Termination
 payments
£
Total
£
Non-Executive Chairman
Jonathan Lane OBE 75,000 — — — 75,000
Executive Directors
Guy Parsons 210,000 21,000 133,350 — 364,350
Marc Vieilledent 168,000 16,800 106,680 — 291,480
Non-Executive Directors 
Scott Christie 40,000 — — — 40,000
Total Directors’ remuneration for the 
year ended 30 September 2016 493,000 37,800 240,030 — 770,830
The Company’s Chief Executive Officer, Guy Parsons, holds a non-executive directorship with one other company and is permitted to retain the fees 
received in respect of this appointment. In addition, during the year Marc Vieilledent, Chief Financial Officer, held a non-executive directorship with 
one other company and, until that appointment was terminated in February 2016, was permitted to retain his fee. Details of their respective non-executive 
appointments are detailed on page 10.
Directors’ interests (as at 30 September 2016)
Ordinary 
shares
% of issued 
share capital
Guy Parsons 196,255 0.3
Scott Christie 37,500 0.1
Jonathan Lane OBE 62,500 0.1
As at 30 September 2016, the interests of the Directors in ordinary shares, pursuant to options granted under the 2015 Performance Share Plan, were 
as follows:
Option holder
Ordinary
shares under
option at
30 September
2015 Date of grant
Lapsed during 
the year
Ordinary 
shares under 
option at 
30 September 
2016
Guy Parsons — 25 January 2016 — 470,324
Marc Vieilledent — 25 January 2016 — 376,259
More information on the easyHotel 2015 Performance Share Plan can be seen in note 27 to the financial statements.  17 easyHotel plc Annual report and accounts 2016
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 (IFRS) 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 the Company and of the profit or loss of the Group and the 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 IFRS 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. 18 easyHotel plc Annual report and accounts 2016
Financial statements
We have audited the financial statements 
of easyHotel plc for the year ended 
30 September 2016 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 2016 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.
Mark R A Edwards 
(Senior Statutory Auditor)
For and on behalf of BDO LLP, 
Statutory Auditors
London
United Kingdom
28 November 2016
BDO LLP is a limited liability partnership 
registered in England and Wales 
(with registered number OC305127).
Independent auditors’ report
to the members of easyHotel plc  19 easyHotel plc Annual report and accounts 2016
Note 
2016
£ 
2015
£ 
System sales*   21,315,210  19,950,888 
Revenue  4  6,024,255  5,541,392 
Cost of sales   (2,150,528) (1,729,456)
Gross profit  3,873,727  3,811,936 
Administrative expenses   (2,832,382) (2,880,912)
Operating profit  5  1,041,345  931,024 
Analysed as:    
Adjusted EBITDA**  1,551,092  1,456,565 
Non-recurring items  5  187,105 (75,941)
Hotel pre-opening and development costs 5  (89,157) (32,528)
Depreciation and amortisation  (446,518) (387,000)
Share based payments   (161,177) (30,072)
  1,041,345  931,024 
Finance income  8  248,934  187,343 
Finance expense  9  (200,078) (330,794)
Profit before taxation   1,090,201  787,573 
Taxation  10  (213,429) (178,187)
Profit for the year and total comprehensive income attributable 
to equity holders of the Company   876,772  609,386 
Earnings per share for profit attributable to the ordinary 
equity holders of the Company
Basic (pence)  11 1.4 1.0 
Diluted (pence) 11 1.4 1.0
*  System sales is a non-statutory measure and represents the full amount that the customer pays for our owned and operated hotels, as well as in respect 
of franchisee-owned and operated hotels (excluding VAT and similar taxes). It also includes initial sign-on fees paid by franchisees to the Company.
**  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 26 to 47 form part of these financial statements.
Consolidated statement of comprehensive income
for the year ended 30 September 2016 20 easyHotel plc Annual report and accounts 2016
Financial statements
Note 
2016
£ 
2016
£ 
2015
£ 
2015
£ 
Assets 
Non-current assets 
Intangible assets  14  149,433 67,266
Property, plant and equipment  13  30,463,074 20,950,446 
Total non-current assets    30,612,507   21,017,712
Current assets 
Trade and other receivables  15 1,243,243  360,697 
Cash and cash equivalents  16  13,659,018  22,635,566 
Corporate taxation  — 6,908  
Total current assets    14,902,261   23,003,171
Total assets    45,514,768   44,020,883
Liabilities 
Non-current liabilities 
Trade and other payables  17  85,679 144,539 
Bank borrowings  18 — 7,200,000 
Deferred tax liability  19  193,792  128,472  
Total non-current liabilities    279,471   7,473,011
Current liabilities 
Trade and other payables  17  4,706,215 4,106,004 
Bank borrowings 18 7,200,000 —
Corporate taxation 119,314  — 
Total current liabilities   12,025,529   4,106,004
Total liabilities   12,305,000   11,579,015
Total net assets   33,209,768   32,441,868
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
Employee Benefit Trust (EBT) reserve  21  (1,067,405) (1,067,405)
Retained earnings  21  2,310,136   1,542,236 
Total equity    33,209,768   32,441,868
The financial statements on pages 19 to 47 were approved and authorised for issue by the Board of Directors on 28 November 2016 and were 
signed on its behalf by:
Marc Vieilledent
Director
The notes on pages 26 to 47 form part of these financial statements.
Consolidated statement of financial position
as at 30 September 2016
Company number 09035738  21 easyHotel plc Annual report and accounts 2016
Consolidated statement of cash flows
for the year ended 30 September 2016
 
2016
£ 
2015
£ 
Cash flows from operating activities 
Profit before taxation for the year  1,090,201  787,573 
Adjustments for: 
Profit on disposal of property, plant and equipment  (282,675) —
Depreciation and amortisation  446,518  387,000 
Share based payment charge  161,177  30,072 
Finance income  (248,934)  (187,343)
Finance expense  200,078 330,794 
Operating cash flows before movements in working capital 1,366,365  1,348,096 
Decrease in trade and other receivables 48,692 562,126 
(Decrease)/increase in trade and other payables  (503,052)  382,130 
Cash generated from operations 912,005  2,292,352 
Corporation tax paid  (21,887) (222,053)
Net cash flows from operating activities 890,118  2,070,299 
Finance income  156,351  187,343 
Finance expense  (200,078) (330,794)
Net cash generated from operations 846,391 1,926,848 
Investing activities 
Purchase of property, plant and equipment (9,227,574) (2,592,938)
Proceeds from property, plant and equipment  590,009 —
VAT on investing activities (1,007,908) —
Net cash used in investing activities (9,645,473) (2,592,938)
Financing activities 
Outflow from own share purchase — (962,218)
Dividends paid  (270,049) —
Net cash utilised by financing activities  (270,049) (962,218)
Net decrease in cash and cash equivalents  (9,069,131) (1,628,308)
Cash and cash equivalents at the beginning of the year  22,635,566 24,263,874 
Exchange gains on cash and cash equivalents 92,583 —
Cash and cash equivalents at the end of the year 13,659,018 22,635,566 
The notes on pages 26 to 47 form part of these financial statements. 22 easyHotel plc Annual report and accounts 2016
Financial statements
 Note
Share 
capital 
£ 
Share 
premium 
£ 
Merger 
reserve 
£ 
EBT 
reserve 
£ 
Retained 
earnings 
£ 
Total 
£ 
At 30 September 2014  625,000  28,592,036 2,750,001  (105,187) 902,778  32,764,628 
Share based payment charge — — — — 30,072 30,072 
EBT share purchases — — — (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 
Share based payment charge 27 — — — — 161,177  161,177 
Dividends paid — — — — (270,049) (270,049)
Total comprehensive income for the year — — — — 876,772 876,772
At 30 September 2016 625,000 28,592,036 2,750,001  (1,067,405) 2,310,136 33,209,768 
The notes on pages 26 to 47 form part of these financial statements.
Consolidated statement of changes in equity
for the year ended 30 September 2016  23 easyHotel plc Annual report and accounts 2016
Note 
2016
£ 
2016
£ 
2015
£ 
2015
£ 
Assets 
Non-current assets 
Investment 28 3,825,683 3,825,683 
Loan to related companies 28 29,911,292 28,476,967 
Loan to Employee Benefit Trust  28 1,300,000  1,300,000  
Total non-current assets    35,036,975   33,602,650 
Current assets 
Trade and other receivables 15 — — 
Total current assets   —  —
Total assets    35,036,975   33,602,650 
Liabilities 
Current liabilities 
Trade and other payables 17 302,878  68,542  
Total current liabilities    302,878  68,542 
Total liabilities    302,878  68,542 
Total net assets    34,734,097  33,534,108 
Equity 
Equity attributable to owners of the Company 
Share capital 20 625,000 625,000 
Other reserves 21 3,575,683 3,575,683 
Share premium 21 28,592,036 28,592,036 
Retained earnings 21 1,941,378  741,389  
Total equity   34,734,097  33,534,108
The financial statements on pages 19 to 47 were approved and authorised for issue by the Board of Directors on 28 November 2016 and were 
signed on its behalf by:
Marc Vieilledent
Director
The notes on pages 26 to 47 form part of these financial statements.
Company statement of financial position
as at 30 September 2016
Company number 09035738 24 easyHotel plc Annual report and accounts 2016
Financial statements
Company statement of cash flows
for the year ended 30 September 2016
2016
£ 
2015
£ 
Cash flows from operating activities 
Total comprehensive income for the year* 1,308,861 1,284,951
Adjustments for:
Share based payment charge  161,177 30,072 
Operating cash flows before movements in working capital 1,470,038 1,315,023
Increase in amount due from subsidiary**  (1,704,375) (1,256,200) 
Decrease in trade and other receivables — 103,691 
Increase/(decrease) in trade and other payables  234,337 (162,514)
Net cash flows inflow from operations — —
Net cash 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 — —
* Includes a £2,600,000 non-cash dividend received from its subsidiary easyHotel UK Ltd (2015: £2,500,000).
**  Includes a dividend of £270,049 paid by easyHotel UK Ltd on behalf of easyHotel plc (2015: £Nil). The dividend payment is considered as a non-cash item at easyHotel plc.
The notes on pages 26 to 47 form part of these financial statements.  25 easyHotel plc Annual report and accounts 2016
Note
Share 
capital 
£ 
Other 
reserve 
£ 
Share 
premium 
£ 
Retained 
earnings 
£ 
Total 
£ 
At 30 September 2014  625,000  3,575,683 28,592,036  (573,634) 32,219,085 
Share based payment charge — — — 30,072  30,072 
Total comprehensive income for the year — — — 1,284,951 1,284,951
At 30 September 2015   625,000  3,575,683 28,592,036  741,389  33,534,108 
Dividends paid — — — (270,049) (270,049)
Share based payment charge 28 — — — 161,177  161,177 
Total comprehensive income for the year  — — — 1,308,861 1,308,861
At 30 September 2016   625,000  3,575,683 28,592,036  1,941,378  34,734,097 
The notes on pages 26 to 47 form part of these financial statements.
Company statement of changes in equity
for the year ended 30 September 2016 26 easyHotel plc Annual report and accounts 2016
Financial statements
Notes forming part of the financial statements
for the year ended 30 September 2016
1 Statement of compliance
easyHotel plc (the “Company”), and its wholly owned subsidiaries (easyHotel UK Ltd and easyHotel Spain S.L.U.), is an international owner, 
developer, operator and franchisor of “easyHotel” branded hotels. The Company is a public limited company whose shares are listed on AIM 
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 IFRS Interpretations Committee (IFRS IC) 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 an individual profit and loss account according to section 408 of the Companies Act 2006. 
The Company’s profit or loss for the financial year has been approved by the Directors in accordance with section 414 (of the Companies Act 2006) 
(total comprehensive income for the year ended 30 September 2016 of £1,284,951 and total comprehensive income of £1,308,861 for the 
year ended 30 September 2015).
The accounts have been prepared on a going concern basis. Details on going concern are provided in the Statement of Responsibilities on 
page 17.
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 2015 and 2016. 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 Ltd (a wholly owned subsidiary) of £3,825,683 (2015: £3,825,683). This investment is held at 
cost less any reasonable provisions for impairment against the investment of which there are currently none.
easyHotel UK Ltd has an investment in easyHotel Spain S.L.U. (a wholly owned subsidiary) of £2,358 (2015: £Nil). This investment is held within 
easyHotel UK Ltd 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 (EBT)
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 they 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.
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.  27 easyHotel plc Annual report and accounts 2016
2 Significant accounting policies continued
Foreign currency continued
On consolidation the results of overseas operations are translated into British pounds at rates approximating to those ruling when the transactions 
took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising 
on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive 
income and accumulated in the currency translation reserve.
System sales
System sales arises from the sale of goods and the 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 fees in 
respect of 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. Upfront fees are generally recognised immediately as an initial sign-on income, with portions relating to legal, contractual, 
marketing or similar items recognised over the period from signing to opening. Where upfront fees specifically relate to exclusivity, these fees 
are recognised over the franchisee exclusivity period.
Consideration received in advance for which the revenue recognition criteria above have not been satisfied are deferred until such time as the 
revenue recognition criteria have been satisfied.
Adjusted EBITDA
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.
Intangible assets
Intangible assets are initially recognised at cost and subsequently amortised so as to write off their carrying value, less their residual value, 
on a straight line basis over the expected useful lives of the assets as follows:
Website and systems development costs  – over 5 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Intangible assets are 
reviewed for indicators of impairment where their value is lower than their recoverable value. Any impairment in value is charged to the statement 
of comprehensive income.
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.
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:
Building core    – over 50 years
Building surface finishes   – over 20 years
Plant and machinery   – over 8–15 years
Furniture and equipment   – over 3–5 years 28 easyHotel plc Annual report and accounts 2016
Financial statements Financial statements
Notes forming part of the financial statements continued
for the year ended 30 September 2016
2 Significant accounting policies continued
Property, plant and equipment continued
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Property, plant and 
equipment are reviewed for indicators of impairment where their value is greater than their recoverable value. Any impairment in value is charged 
to the statement of comprehensive income.
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 Company 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 include 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 consolidated 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 consolidated 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 consolidated 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 they are paid 
by the Directors. In the case of final dividends, this is when approved by the shareholders at the Annual General Meeting (AGM).  29 easyHotel plc Annual report and accounts 2016
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 2015 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 16: Leases (from 1 January 2019)
• 
IFRS 14: Regulatory Deferral Accounts (from 1 January 2016)
• 
IFRS 15: Revenue from Contracts with Customers (from 1 January 2018)
• 
IFRS 10 (Amendment): Consolidated Financial Statements (from 1 January 2016)
• 
IFRS 11 (Amendment): Accounting for Acquisitions of Interests in Joint Operations (from 1 January 2016)
• 
IFRS 12 (Amendment): Disclosure of Interests in Other Entities (from 1 January 2016)
• 
IAS 1 (Amendment): Presentation of Financial Statements (from 1 January 2016)
• 
IAS 16 (Amendment): Property, Plant and Equipment (from 1 January 2016)
• 
IAS 27 (Amendment): Equity Method in Separate Financial Statements (from 1 January 2016)
• 
IAS 28 (Amendment): Investments in Associates and Joint Ventures (from 1 January 2016)
• 
IAS 38 (Amendment): Intangible Assets (from 1 January 2016)
• 
Annual improvements to IFRS (from 1 January 2016) 
The Directors have reviewed the new interpretations and amendments, in particular IFRS 15 and IFRS 16. In particular they have reviewed the 
treatment of certain franchise fees in relation to IFRS 15 and any potential lease arrangements in relation to IFRS 16. 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. 30 easyHotel plc Annual report and accounts 2016
Financial statements Financial statements
Notes forming part of the financial statements continued
for the year ended 30 September 2016
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 for 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 the Company are exposed through their operations to the following financial risks:
• 
credit risk;
• 
interest rate risk;
• 
foreign exchange risk; and
• 
liquidity risk.
In common with all other businesses, the Group and the Company are exposed to risks that arise from their use of financial instruments. This note 
describes the Group and the 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 the Company’s exposure to financial instrument risks, their objectives, policies 
and processes for managing those risks, or the methods used to measure them from previous periods, unless otherwise stated in this note.  31 easyHotel plc Annual report and accounts 2016
3 Financial instruments – risk management continued
Principal financial instruments
The principal financial instruments used by the Group and the 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.
A summary of the financial instruments held by category is provided below:
Group 
2016
£ 
Group 
2015
£ 
Company 
2016
£ 
Company 
2015
£ 
Financial assets     
Cash and cash equivalents  13,659,018  22,635,566 — —
Trade and other receivables 20,941 19,316 — —
Related party loan — — 29,911,292  28,476,967 
Total financial assets classified as loans and receivables  13,679,959 22,654,882  29,911,292 28,476,967 
Financial liabilities     
Trade and other payables  2,765,141  1,723,064  302,878  68,542 
Bank borrowings  7,200,000  7,200,000 — —
Total financial liabilities classified as amortised cost 9,965,141  8,923,064  302,878  68,542 
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 the 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 the 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 the 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 the Company do not enter into derivatives to manage credit risk.
The maximum amount of credit risk exposure is reflected in the carrying amount of financial assets held at the year end of £20,941 
(2015: £19,316).
Market risk
Market risk arises from the Group and the 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) or foreign 
exchange rates (currency risk).
The Company has no fair value and cash flow interest rate risk to disclose. 32 easyHotel plc Annual report and accounts 2016
Financial statements Financial statements
Notes forming part of the financial statements continued
for the year ended 30 September 2016
3 Financial instruments – risk management continued
Interest rate risk
The Group is partially funded through bank borrowings. The Group obtained a bank borrowing facility during the period ended 30 September 2015 
for the amount of £8.7m. Any amount borrowed bears interest at 1.92% above UK base rate. At 30 September 2016 £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 2016, while a 50 basis point decrease would have increased profit before tax by the same amount.
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 the 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 2016        
Financial assets 
Cash and cash equivalents  872,796  288,391  197,610  1,358,797 
Trade receivables — 13,156 — 13,156 
Total financial assets  872,796  301,547  197,610  1,371,953 
Financial liabilities        
Trade and other payables  93,008 — 24,692  117,700 
Total financial liabilities  93,008 — 24,692 117,700 
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 
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 £10,145 (2015: £139,363). A 5% weakening in the exchange rate would, on the same basis, have increased total comprehensive income 
and net assets by £10,145 (2015: £139,363).
The Company has no foreign exchange risk to disclose.  33 easyHotel plc Annual report and accounts 2016
3 Financial instruments – risk management continued
Liquidity risk
Liquidity risk arises from the Group and the 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 the Company will encounter difficulty in meeting their financial obligations as they fall due.
The Group and the Company’s policy is to ensure that they will always have sufficient cash to allow them to meet their liabilities when they become due. 
To achieve this aim, the Group and the Company finance their operations through a mix of equity and borrowings. The Group and the Company’s 
objective is to provide funding for future growth and achieve a balance between continuity and flexibility through their 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 the Company expected to have sufficient liquid resources to meet their obligations under all 
reasonably expected circumstances.
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 2016     
Trade and other payables 2,785,510 — — — —
Bank borrowings 43,560 7,200,000 — — —
Total 2,829,070 7,200,000 — — —
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 — —
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 2016        
Trade and other payables  302,878 — — — —
Total  302,878  — — — —
At 30 September 2015 
Trade and other payables  68,542 — — — —
Total 68,542 — — — —
More details in regard to the line items are included in the respective notes:
• 
Trade and other payables – note 17. 34 easyHotel plc Annual report and accounts 2016
Financial statements Financial statements
Notes forming part of the financial statements continued
for the year ended 30 September 2016
3 Financial instruments – risk management continued
Capital disclosures
The Group and the Company monitor capital which comprises all components of equity (i.e. share capital, share premium and retained earnings).
The Group and the 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 the Company set the amount of capital they require in proportion to risk. The Group and the Company manage their capital structure 
and make 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 the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, 
issue new shares or sell assets to reduce debt.
4 Revenue
2016
£ 
2015
£ 
Revenue arises from:    
Owned hotel revenue  4,715,845  4,012,541
Franchised hotel revenue*  1,296,104  1,505,617
Other income  12,306  23,234
 6,024,255  5,541,392
* Includes an accelerated fee release of £49,130 (2015: £269,500).
5 Operating profit and adjusted EBITDA
2016
£ 
2015
£ 
The following have been included in arriving at operating profit before tax:
Auditors’ remuneration includes:
Company audit fees (15,000) (15,000)
Subsidiary audit fees (29,500) (26,000)
Fees for audit related assurance services (20,000) (19,000)
Total auditors’ remuneration (64,500) (60,000)  35 easyHotel plc Annual report and accounts 2016
5 Operating profit and adjusted EBITDA continued
2016
£ 
2015
£ 
Non-recurring items from reportable segments include:    
Net accelerated initial fee release  29,630  269,500 
Other non-recurring items include: 
Loss of office payments —  (168,509)
Recruitment fees  —  (120,864)
Legal and other costs  (44,041) (56,068)
Abortive fees  (6,109) — 
Systems restructuring  (75,050) — 
Profit on disposal of property, plant and equipment 282,675 —
 157,475 (345,441)
Total non-recurring income/(costs) 187,105 (75,941)
* Profit on disposal of property, plant and equipment consists of profit from the sale of the ground floor unit in the Liverpool property.
2016
£ 
2015
£ 
Hotel pre-opening and development:    
Rental income  12,306  21,160 
Pre-opening operational costs  (101,463) (53,688)
Total hotel pre-opening and development costs  (89,157) (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:
2016
£ 
2015
£ 
Wages and salaries  1,279,138  1,147,456 
Social security costs  169,944  150,534 
Loss of office payments  —  168,509 
  1,449,082  1,466,499 
The average number of employees during the year was 38 (2015: 30).
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 the Directors of the Group. Amounts disclosed below include social security costs.
2016
£
2015
£
Aggregate emoluments 770,830 723,266
In addition there were total employer’s National Insurance expenses of £71,290 (2015: £53,217).
The remuneration of the highest paid Director amounted to £364,350 (2015: £160,416). Details by Director can be seen in the 
Remuneration Report (page 16). 36 easyHotel plc Annual report and accounts 2016
Financial statements Financial statements
Notes forming part of the financial statements continued
for the year ended 30 September 2016
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.
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 adjusted EBITDA.
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 2016
Revenue
Total revenue from external customers 4,728,151  1,296,104  6,024,255 
Adjusted EBITDA 2,570,677  636,385  3,207,062 
Profit before taxation 2,014,925  666,015  2,680,940 
Segment assets 43,013,707  2,174,506  45,188,213 
Segment liabilities (9,303,902) (2,174,506) (11,478,408) 
Other
Additions to non-current assets 10,237,533  —  10,237,533 
Disposals of non-current assets (307,334)  — (307,334) 
Finance income 59,341  —  59,341 
Finance cost (200,078) — (200,078)
Depreciation and amortisation (415,015) — (415,015)
30 September 2015
Revenue
Total revenue from external customers 4,034,479  1,506,913  5,541,392 
Adjusted EBITDA 2,264,574  630,851  2,895,425 
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 
Finance cost (179,292) (151,502) (330,794)
Depreciation and amortisation (379,169) — (379,169)  37 easyHotel plc Annual report and accounts 2016
7 Segment information continued
Measurement of operating segment profit or loss, assets and liabilities continued
Reconciliation of reportable adjusted EBITDA, profit or loss, assets and liabilities to the Group’s corresponding amounts is shown below:
2016
£
2015
£
Adjusted EBITDA of reportable segments 3,207,062  2,895,425 
Adjusted EBITDA of corporate office (1,655,970) (1,438,783) 
Total adjusted EBITDA  1,551,092  1,456,642 
Profit before income tax 
Total profit of reportable segments 2,680,940  2,641,124 
Corporate office expenses and interest (1,497,880) (1,445,510) 
Other non-recurring income/(costs) (see note 5) 157,475 (345,441) 
Hotel pre-opening and development costs (89,157) (32,528) 
Share based payments (161,177) (30,072) 
Profit before tax per statement of changes in equity 1,090,201  787,573 
Assets
Total assets for reportable segments 45,188,213  43,627,010 
Cash in Employee Benefit Trust 1,693  233,849 
Corporation tax — 6,908 
Corporate office assets 324,862  153,115 
Total assets per statement of financial position 45,514,768  44,020,882 
Liabilities
Total liabilities for reportable segments (11,478,408) (10,949,101) 
Corporation tax (119,314) —
Corporate office liabilities (513,486) (501,444) 
Deferred tax liabilities (193,792) (128,470)
Total liabilities per statement of financial position (12,305,000) (11,579,015)
Geographical information
2016
£
2015
£
Revenue by location
United Kingdom 5,144,034 4,591,324
Europe 774,413 541,717
Rest of the world 105,808 408,351
 6,024,255 5,541,392
Total non-current assets by location 
United Kingdom 29,112,878 21,017,712
Spain 1,499,629 —
Total 30,612,507 21,017,712 38 easyHotel plc Annual report and accounts 2016
Financial statements Financial statements
Notes forming part of the financial statements continued
for the year ended 30 September 2016
8 Finance income
Recognised in profit or loss:
2016
£
2015
£
Finance income   
Interest income on financial assets measured at amortised cost  59,341  55,981 
Foreign exchange gain 189,593 —
Interest income on amounts due from Benelux franchisee  —  131,362 
Total interest payable and similar charges  248,934  187,343 
On 2 October 2014, the Group deposited €3.3m with a Belgian notary to secure an easyHotel property in Brussels; interest was paid to easyHotel 
at a rate of 10% per annum from 2 April 2015. The amount was fully repaid in October 2015.
9 Finance expense
Recognised in profit or loss:
2016
£
2015
£
Finance expense  
Interest expense on financial liabilities measured at amortised cost  200,078  179,292 
Foreign exchange loss — 151,502 
Total interest payable and similar charges 200,078  330,794 
10 Income tax
2016
£
2015
£
Current tax expense
Current tax on profits for the year 148,329 92,209
Adjustment in respect of prior period (221) 71,261
Total current tax 148,108 163,470
Deferred tax expense
Deferred tax charge for the year 102,010 155,492
Adjustment in respect of prior period (2,491) (130,434)
Rate change (34,198) (10,341)
Total income tax expense 213,429 178,187
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:
2016
£
2015
£
Profit before tax 1,090,201 787,573
Expected tax charge based on the standard rate of United Kingdom
corporation tax at the domestic rate of 20.0% (2015: 20.5%) 218,040 161,452
Expenses not deductible for tax purposes 68,267 90,126
Tax losses carried forward 4,823 —
Impact of chargeable gains (40,791) —
Prior year current tax adjustment (221) 71,261
Prior year deferred tax adjustment (2,491) (130,434)
Effect of change in tax rate (34,198) (14,218)
Total income tax expense 213,429 178,187  39 easyHotel plc Annual report and accounts 2016
11 Earnings per share
Basic earnings per ordinary share is calculated using the weighted average number of ordinary shares in issue during the financial period 
of 62,500,000 (2015: 62,500,000). Diluted earnings per ordinary share is calculated using the weighted average number of ordinary shares 
in issue during the financial period of 61,375,000 (2015: 61,627 ,740). The Company has 846,583 potentially dilutive options, issued or outstanding. 
Earnings consists of profit for the period attributable to the shareholders amounting to £876,772 (2015: £609,386).
12 Dividends
Interim cash dividend of 0.11p per ordinary share (£67,512) was paid by the Group during the period under review (2015: £Nil).
Final cash dividend of 0.22p per ordinary share (£218,625) is proposed by the Group during the period under review (2015: £202,538).
13 Property, plant and equipment
Land and 
building 
core 
£ 
Building 
surface 
finishes
£ 
Plant and 
machinery 
£ 
Furniture and 
equipment 
£ 
Total 
£ 
Cost     
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 1 October 2015  18,252,499  2,883,259  470,248  369,813  21,975,819 
Additions  9,241,177  737,543  211,755  52,550  10,243,025 
Disposals  (307,334) — — — (307,334)
At 30 September 2016  27,186,342  3,620,802  682,003  422,363 31,911,510
Accumulated depreciation 
At 30 September 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 1 October 2015  423,812  400,961  53,061  147,539  1,025,373 
Charge for the year  165,641  139,144  49,375  68,903  423,063 
Disposals — — — — —
At 30 September 2016  589,453  540,105  102,436  216,442  1,448,436 
Net book value      
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  222,273  20,950,446
At 30 September 2016  26,596,890 3,080,697  579,567  205,920  30,463,074
The property, plant and equipment listed above are held as security against bank facilities referred to in note 18.
As at 30 September 2016 there are £11,405,779 (2015: £1,679,534) assets relating to assets under the course of construction included within 
the above table.
The cost of the assets will be depreciated once the asset is complete and available for use. 40 easyHotel plc Annual report and accounts 2016
Financial statements Financial statements
Notes forming part of the financial statements continued
for the year ended 30 September 2016
14 Intangible assets
Website and
system
development
costs
£
Total
£ 
Cost   
At 1 October 2014 — —
Additions  75,097  75,097 
At 1 October 2015  75,097  75,097 
Additions  105,622  105,622 
At 30 September 2016  180,719  180,719 
Accumulated amortisation   
At 1 October 2014 — —
Amortisation charge for the year  7,831  7,831 
At 1 October 2015  7,831  7,831 
Amortisation charge for the year  23,455 23,455
At 30 September 2016  31,286  31,286
Net book value   
At 30 September 2015  67,266  67,266 
At 30 September 2016  149,433  149,433 
15 Trade and other receivables
Group 
2016
£
Group 
2015
£
Company 
2016
£
Company 
2015
£
Trade receivables 20,941 19,316  — — 
Accrued income  —  5,245  — — 
Total financial assets other than cash and cash equivalents 
classified as loans and receivables  20,941  24,561  —  — 
Prepayments  291,064  334,979  —  — 
VAT receivable  931,238  — —  — 
Other receivables — 1,157  —  — 
Total trade and other receivables 1,243,243 360,697  —  — 
Classified as follows: 
Current portion 1,243,243 360,697  —  — 
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.  41 easyHotel plc Annual report and accounts 2016
16 Cash and cash equivalents
For the purpose of the cash flow statement, cash and cash equivalents comprise the following balances with original maturity less than 90 days:
Group 
2016
£
Group 
2015
£
Company 
2016
£
Company
2015
£
Cash at bank and in transit 13,659,018  20,192,768  — —
Restricted cash  — 2,442,798  — —
Total cash and cash equivalents 13,659,018  22,635,566  — —
At the end of 30 September 2015, the Group had restricted cash in escrow relating to funds advanced to the Benelux franchisee. 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
2016
£
Group 
2015
£
Company 
2016
£
Company 
2015
£
Trade payables 1,683,444  572,274 — —
Other payables  31,257  33,836 — —
Amounts payable to franchisees in future  450,964  590,839 — —
Accruals  619,845  526,115  302,878  68,542 
Total financial liabilities classified as financial liabilities measured 
at amortised cost 2,785,510  1,723,064  302,878  68,542 
Other taxation and social security  49,276  528,276 — —
VAT payable  — 76,670 — —
Bookings in advance  1,833,070  1,733,766 — —
Deferred income  124,038  188,767 — —
Total trade and other payables  4,791,894  4,250,543  302,878  68,542 
Classified as follows: 
Non-current portion 85,679 144,539 — — 
Current portion  4,706,215  4,106,004  302,878  68,542 
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):
2016
£
2015
£
Up to three months 2,785,510 1,723,064
An analysis of the Group’s trade and payables classified as financial liabilities by currency is provided in note 3. 42 easyHotel plc Annual report and accounts 2016
Financial statements Financial statements
Notes forming part of the financial statements continued
for the year ended 30 September 2016
18 Bank borrowings
The carrying value and fair value of borrowings are as follows:
Group 
2016
£
Group 
2015
£
Company 
2016
£
Company 
2015
£
Non-current bank loan — 7,200,000  —  —
Current bank loan 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 Ltd’s property, plant and equipment (note 13), as well as a floating charge 
over all other assets of easyHotel UK Ltd, 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% (2015: 20%).
2016
£
2015
£
Group
At the beginning of the year 128,472 113,755
Adjustment in respect of the prior year (2,491) (130,434)
Recognised in comprehensive income 102,010 155,492
Rate change (34,199) (10,341)
At the end of the year 193,792 128,472
Company
At the beginning of the year — —
Recognised in comprehensive income — —
At the 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.  43 easyHotel plc Annual report and accounts 2016
19 Deferred tax continued
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
consolidated
statement of
comprehensive
income
£
At 1 October 2014 119,821 (1,666) (4,400) 113,755
Comprehensive income debit 8,651 1,666 4,400 14,717
At 30 September 2015 128,472 — — 128,472
Impact of rate change on opening balance (31,837) — (2,362) (34,199)
Prior year adjustment (2,491) — — (2,491)
Comprehensive income debit 86,266 — 15,744 102,010
At 30 September 2016 180,410 — 13,382 193,792
Company
Accelerated
capital
allowances
£
Unutilised
tax
losses
£
Other
temporary
and
deductible
differences
£
Debited to
consolidated
statement of
comprehensive
income
£
At 1 October 2014 — — — —
Comprehensive income debit — — — —
At 30 September 2015 — — — —
Comprehensive income debit — — — —
At 30 September 2016 — — — —
20 Share capital
Authorised
2016
Number
2015
Number
2016
£
2015
£
Ordinary shares of 1p each 62,500,000 62,500,000 625,000 625,000
Allotted, called up and fully paid
2016
Number
2015
Number
2016
£
2015
£
Ordinary shares of 1p each 62,500,000 62,500,000 625,000 625,000
During the year ended 30 September 2016 no ordinary shares were issued by the Group.
As at 30 September 2016 1,125,000 shares were held by the Employee Benefit Trust (2015: 1,125,000). 44 easyHotel plc Annual report and accounts 2016
Financial statements Financial statements
Notes forming part of the financial statements continued
for the year ended 30 September 2016
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 Subsidiaries
easyHotel UK Ltd (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 Spain S.L.U. (a company incorporated in Spain) is a wholly owned subsidiary of easyHotel UK Ltd and is consolidated into the accounts 
of easyHotel plc.
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:
2016
£
2015
£
Amounts recognised in profit or loss
Royalties paid 172,548 129,955
Brand protection costs 20,000 15,272
Outstanding balance at year end
Amount owned to related parties — 17,339
Services between related parties were made at market related prices. 
Amounts recognised in profit or loss in 2016 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.
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.  45 easyHotel plc Annual report and accounts 2016
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 2016 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 further hotel rooms on 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 2017.
26 Events after the reporting date
On 28 September 2016 easyHotel announced the placing of 38,000,000 new ordinary shares of 1p each in the capital of the Company by 
Investec Bank plc to raise approximately £38.0m (before expenses). The placing were subject, inter alia, to the approval by shareholders of the 
resolutions set out in the notice of general meeting which was duly passed in a general meeting held on 14 October 2016. The placing shares 
represent 60.8% of the ordinary shares in issue and the placing price represents a premium of approximately 18.3% to the closing mid-market 
price of 84.5p per existing ordinary share on 27 September 2016, being the latest practicable date prior to the publication of this announcement. 
The placing transaction took place on 17 October 2016 and following admission the number of ordinary shares in issue is 100,500,000.
In November 2016 a new five-year loan facility for an amount of £12.0m was entered into, which replaces the existing £7.2m facility. The new facility 
has been agreed at Libor +2.50% and the capital portion of the loan amortises at a rate of 3.00% per annum.
On 14 November 2016 it was announced that the acquisition of the land for the new build easyHotel Barcelona was completed. This is for 
a 204-room easyHotel located on Gran Via, the main avenue of L’Hospitalet de Llobregat. The hotel is expected to open in early 2018.
There are no other matters that occurred between the reporting date and the date of approval of these financial statements that the Directors 
believe are necessary to draw attention to.
27 Share option scheme
The first awards under the 2015 Performance Share Plan were granted in January 2016. Initial awards to each of the Executive Directors were 
equivalent (based on average share price of 89.3p per share for the five business days immediately preceding the date of grant) to 200% of their 
base salary as agreed with them on recruitment. Options were therefore granted over 846,583 ordinary shares during the 2016 financial period 
(representing 1.4% of the enlarged issued share capital) pursuant to the Performance Share Plan. 46 easyHotel plc Annual report and accounts 2016
Financial statements Financial statements
Notes forming part of the financial statements continued
for the year ended 30 September 2016
27 Share option scheme continued
Movement in the number of share options outstanding during the year was as follows:
Number 
of options
Outstanding at 1 October 2015 Nil
Forfeited/lapsed during the period Nil
Granted during the period 846,583
Outstanding at 30 September 2016 846,583
Exercisable at 30 September 2016 Nil
The Group recognised total expense of £161,177 (2015: £30,072) related to the share options in 2016; this was determined using the Black 
Scholes model, using the following assumptions:
Share price at grant date 91p
Weighted average exercise price —
Risk-free rate 3.00%
Dividend yield 0.35%
Volatility 36.41%
28 Further notes to the Company balance sheet
Investment in subsidiary
On 14 May 2014 the Company acquired 100% of the share capital of easyHotel UK Ltd. easyHotel plc had an investment in easyHotel UK Ltd 
(a wholly owned subsidiary) as at 30 September 2016 for an amount of £3,825,683 (2015: £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 Ltd is a company incorporated in England and Wales, with its principal place of business being 80 Old Street, London EC1V 9AZ, 
United Kingdom.
In November 2015, easyHotel UK Ltd acquired 100% of easyHotel Spain S.L.U. easyHotel UK Ltd had an investment in easyHotel Spain S.L.U. 
(a wholly owned subsidiary) as at 30 September 2016 for an amount of £2,358 (2015: £Nil). 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 Spain S.L.U. is a company incorporated in Spain, with its principal place of business being Paseo de la Castellana numero 53, 
planta 8, 28046 Madrid.
Loan to related company
easyHotel plc had a loan due from easyHotel UK Ltd (a wholly owned subsidiary) as at 30 September 2016 for an amount of £29,911,292 
(2015: £28,476,967). 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.  47 easyHotel plc Annual report and accounts 2016
28 Further notes to the Company balance sheet continued
Loan to Employee Benefit Trust
The Company made a loan of £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 easyHotel plc 2015 Performance Share Plan.
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 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 2006.
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, for existing employees’ share plans or any other employees’ share plans established 
in the future, under the easyHotel plc 2015 Performance Share Plan.
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 2016 1,125,000 shares were held by the Employee Benefit Trust (2015: 1,125,000). 48 easyHotel plc Annual report and accounts 2016
Financial statements Financial statements
Jonathan Lane OBE 
(Non-Executive Chairman)
Guy Parsons 
(Chief Executive Officer)
Marc Vieilledent 
(Chief Financial Officer)
Scott 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
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
Wolfgang Gold
(Global Franchising Director)
wolfgang.gold@easyHotel.com
www.easyHotel.com/franchising
Directors, Secretary and advisers  
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