EasyGroup has announced that its hotel arm – easyHotel – signed a US$407m (£219m, 320m euro) master franchise agreement with Istithmar Hotels – a subsidiary of Dubai-based alternative investment house Istithmar PJSC – to open a chain of 38 budget hotels across the Middle East, North Africa, India and Pakistan within the next five years.
EasyHotel will open six properties in Dubai, eight in India, three each in Saudi Arabia and Pakistan, two each in Lebanon and Egypt and one each in Sharjah, Kuwait, Bahrain, Oman, Abu Dhabi, Ras Al Khaimah, Qatar, Morocco, Turkey, Syria, Libya, Jordan, Tunisia and Algeria.
Each hotel will contain between 80 and 120 rooms.
Eight of these hotels will be operational by the end of 2007 and a further 18 will be operational by the end of 2008. The remaining 12 will be operational over the following three years.
The expansion is a response to easyGroup’s perceived market demand for branded budget hotels in view of mid-scale segment growth in these regions.
Stelios Haji-Ioannou, easyGroup chair, said: “Our expansion into these areas demonstrates our strategy of building our brands globally by working with world class partners like Istithmar PJSC.”
The hotels offer short-stay travellers small, no-frills and simply furnished rooms at budget prices.
The company opened hotels in London and Switzerland in 2005. Details: www.easyHotel.com
