EasyHotel saw a 21% fall in hits annual pre-tax profits to £860,000 in the last financial year when it opened five new hotels and secured a further three UK sites.
Sales for the full year to the end of September were up almost 40% to £29.7 million and underlying earnings were up 48% to £2.3 million.
The budget hotel chain said its five new hotels were trading ‘exceptionally strongly’, with combined occupancy of over 85%.
It has also expanded overseas, where it now has franchised hotels in eight countries and has another four in the planning.
However, profits were down due to increased costs associated with its expansion, the closure of two floors at its hotel in London’s Old Street and the absence of any capital gain from disposals.
Chief executive Guy Parsons said: "Whilst the wider macro-economic uncertainty continues to impact consumer confidence, we believe EasyHotel is well positioned.
"The refinements that have been introduced to the business over the course of the last year are further strengthening our brand and ensuring that the EasyHotel offering is one that can support delivery of the Board’s ambitious long-term strategy for growth."
