EasyHotel has warned the coming year will be more challenging as it issues trading advice for the first quarter of the current financial year, ahead of its annual general meeting later today.
Overall, total system sales were up 31% for the quarter, with revenue up 60%.
Like-for-like revenue per available room (revPAR) for its owned hotels is up 11.2%, outperforming competitors by 5.2%.
EasyHotel said its franchised hotels performed particularly well across the UK. However, results across the wider European market were more varied, and the easyHotels in Holland performed less strongly than they had in 2018.
In a statement, easyHotel said: "The Board however believe that that the 2019 financial year will be more challenging than 2018 and have taken the decision to continue to drive revenue growth and brand recognition, at the expense of gross margin, through increasing the use of online travel agents (OTAs) as compared with prior periods."
CEO Guy Parsons said: "Whilst we are not immune from the ongoing political and economic challenges and their impact on the hotel sector, our robust business model means that we have continued to outperform our markets in the period.
"These current uncertainties are presenting us with opportunities, which might not otherwise be possible, to acquire sites on good terms in central locations in our core target cities, such as Dublin, Bristol and Paris Charles de Gaulle.
"Well publicised uncertainties and frequent regulatory delays can postpone completion of our hotels and how quickly they reach maturity.
"However, we are making good progress with our strategic priorities and are confident that the appeal of easyHotel’s super budget brand will deliver long-term growth."
