Budget hotels group clinches £7.6m deal for Blackpool hotel
Budget hotels group easyHotel announced today it has bought a site on Blackpool’s Promenade in a £7.6m deal.
It has acquired a 999-year lease on a site at 429 The Promenade, to develop a purpose-built 103-room easyHotel, subject to receiving planning permission.
Located on the city’s iconic Promenade, the site is ideally situated, less than 500 metres from Blackpool South Station, in the heart of the premier seaside resort.
With more than 10 million visitors per year, Blackpool is famous for its year-round entertainment.
Headline tourist attractions include The Illuminations, Blackpool Tower, The Winter Gardens (which plays host to party conferences, international darts and ballroom dancing events among others), The Pleasure Beach (home to the UK’s largest roller coaster), Blackpool Sands and Blackpool Zoo.
The Blackpool accommodation market is famously dominated by small unbranded hotels and B&Bs, 93% of which have no quality grading.
The group said this creates an opportunity for easyHotel to deliver a guaranteed standard of accommodation to those visiting Blackpool.
Today’s announcement revealed that the site will be developed for a purpose-built hotel and two A3 units for restaurants or cafes on the ground floor, which are expected to be sold once the development has completed, and the units have been let.
The hotel is expected to open during the group’s 2020/21 financial year.
The total forecast (net) cost of acquisition and construction will be £7.6m.
Included in today’s announcement was news that the group has also opened three further owned hotels (Leeds, Sheffield and Barcelona) as well as two franchised hotels (Reading and Belfast).
This takes the total number of owned rooms open to 1,130, with a further 1,938 franchise rooms now open.
All five hotels are trading strongly and in line with management expectations.
Guy Parsons, easyHotel chief executive, said: “The five hotels that we have recently opened have traded strongly from day one and we are delighted with the positive customer reaction to our stylish new brand format.
“I am also pleased to announce our intention to open an easyHotel in Blackpool, Britain’s most famous seaside resort.
“Blackpool is a prosperous and lively city and is hugely popular with UK and international visitors.
“Once open, easyHotel will make a major contribution to the local hospitality trade.
“Our super-budget offer will enable visitors to have affordable, comfortable, stylish accommodation at the heart of Britain’s seaside culture and keep money in their purses and wallets to spend on local attractions.”