easyHotel signs deal to expand Middle East footprint

10th Nov 2015 10:38

(ShareCast News) - Budget hotel operator easyHotel has signed a master development partnership with MAN Investments to develop its brand in the Middle East. The AIM-listed company announced the deal on Tuesday, and said MAN Investments will focus its new developments in the United Arab Emirates and Oman.The new hotels are expected to be a mix of new purpose-built assets and conversions of existing buildings, with 600 rooms to open by 2017.MAN Investments are targeting to open at least another 1,600 rooms by the end of 2020. The first hotel will be a 300 room easyHotel built in the Bur Dubai area of Dubai, and the UK-based company will enter into franchise agreements for each new hotel.Chief executive Guy Parsons said MAN Investments has established a significant geographical foothold in the region."[It is] in a number of business areas, many of which are targeted towards value conscious consumers, which makes them a great cultural fit for easyHotel."With land prices currently at a premium, their capacity for speed and scale of development is impressive and a considerable competitive advantage."easyHotel already has one property in the UAE at Dubai's Jebel Ali Free Zone Authority.Shares in easyHotel jumped 2.2p (3.31%) to 68.7p by 1031 GMT.