Microcap Uncovered gems: Niche Hotels from N+1, our thoughts
In its second edition of “Microcap - Uncovered gems”, leading small cap broker N+1 Singer takes a look at three contrasting accommodation plays - easyHotel, Safestay and Snoozebox. N+1 considers that the macro-economic background is supportive for increased leisure spend and a strong travel/accommodation market and all three propositions offer something unique and niche both for the consumer and for the investor. N+1 strongly recommends a look at all three companies; we offer our thoughts as well
easyHotel (AIM:EZH) operates in the “super-budget” hotel market through both an owned and franchised model. The Group arrived on AIM in June 2014 but has seen its share price tumble since with the current market capitalisation only £40m. The Group currently has three owned hotels comprising 390 rooms, and a further 18 franchised hotels with 1,490 rooms. New CEO Guy Parsons joined in August 2015 and comes with a terrific pedigree in the sector having been Sales and Marketing Director for the Whitbread Hotel Company and subsequently, Managing Director of TGI Fridays. He joined the Travelodge Board in 2004 and…