Easyhotel : Impact announcement

28 September 2016

easyHotel plc (LSE: EZH) ("easyHotel" or the "Company" and together with its subsidiaries, the "Group"), the owner, developer, operator and franchisor of "super budget" branded hotels, today announces a conditional placing of up to 38,000,000 new ordinary shares of 1.0 pence each ("Ordinary Shares") in the capital of the Company (the "Placing Shares") at a price of 100.0 pence per Placing Share (the "Placing Price") to raise £38.0 million (before expenses) (the "Placing").

The Placing Shares represent approximately 60.8 per cent. of the Ordinary Shares in issue as at the date hereof ("Existing Ordinary Shares") and the Placing Price represents a premium of approximately 18.3 per cent. to the closing mid-market price of 84.5 pence per Existing Ordinary Share on 27 September 2016, being the latest practicable date prior to the publication of this Announcement.

Highlights

• Gross proceeds of the Placing of £38.0 million before expenses (approximately £36.7 million after expenses).

• Proceeds of the Placing to be primarily utilised to fund owned hotel roll-out strategy.

• Owned hotel pipeline of 2,437 rooms and a franchise pipeline of 2,075 rooms either committed or identified.

• Consolidating easyHotel as a leader in the super budget market in Europe and the Middle East.

• Board expects the investment of new capital in the hotel pipeline to be materially earnings per share enhancing in the medium term.

• Placing conditional on, inter alia, the passing of the Resolutions which are to be proposed at a General Meeting of the Company to be held on 14 October 2016 and Admission taking place by no later than 17 October 2016.

• Investec Bank plc ("Investec") is acting as Nominated Adviser and sole broker to the Company.

"Since IPO easyHotel has made significant progress in line with its strategy to speed up owned hotel development and accelerate the roll-out of franchise hotels to drive high EBITDA returns on investment.

"With more opportunities available than had been expected, and over 4,500 rooms committed or identified in the owned and franchise development pipeline, the proceeds of the Placing will primarily be used to fund the continuation of our owned hotel roll-out to deliver enhanced financial returns,

whilst consolidating easyHotel's position as a leader in the super budget hotel market in Europe and the Middle East."

Enquiries:

easyHotel is the owner, developer, operator and franchisor of branded hotels. Its strategy is to target the "super budget" segment of the hotel industry by marketing "clean, comfortable and safe" hotel rooms to its customers. Website: www.easyHotel.com

Operating hotels

easyHotel's owned hotels currently comprise 390 rooms, and it has a further 17 franchised hotels with 1,405 rooms.

Old Street (London), Glasgow, Croydon.

Bulgaria (Sofia), Germany (Berlin, Frankfurt), Hungary (Budapest), The Netherlands (Amsterdam, Rotterdam, The Hague), Switzerland (Basel, Zurich), UAE (Dubai), UK (Edinburgh, London Heathrow, Central London, Luton).

Hotel development pipeline

The Company's development pipeline of owned and franchised hotels currently consists of:

United Kingdom (Liverpool, Manchester, Birmingham, Ipswich) Subject to planning permission: Spain (Barcelona)

The Netherlands (Amsterdam Arena Boulevard, Amsterdam-Zaandam), Belgium (Brussels), UAE (Dubai), Germany (Bernkastel-Kues), Portugal (Lisbon), Turkey (Istanbul)

This Announcement may contain and the Company may make verbal statements containing "forward- looking statements" with respect to certain of the Company's plans and its current goals and expectations relating to its future financial condition, performance, strategic initiatives, objectives and results. Forward-looking statements sometimes use words such as "aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "seek", "may", "could", "outlook" or other words of similar meaning. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond the control of the Company, including amongst other things, United Kingdom domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of governmental and regulatory authorities, the effect of competition, inflation, deflation, the timing effect and other uncertainties of future acquisitions or combinations within relevant industries, the effect of tax and other legislation and other regulations in the jurisdictions in which the Company and its respective affiliates operate, the effect of volatility in the equity, capital and credit markets on the Company's profitability and ability to access capital and credit, a decline in the Company's credit ratings; the effect of operational risks; and the loss of key personnel. As a result, the actual future financial condition, performance and results of the Company may differ materially from the plans, goals and expectations set forth in any forward-looking statements. Any forward-looking statements made in this Announcement by or on behalf of the Company speak only as of the date they are made. Except as required by applicable law or regulation, the Company expressly disclaims any obligation or undertaking to publish any updates or revisions to any forward-looking statements contained in this Announcement to reflect any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

Investec is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority (the "FCA") and the Prudential Regulation Authority in the United Kingdom and is acting exclusively for the Company and no one else in connection with the Placing, and Investec will not be responsible to anyone (including any Placees) other than the Company for providing the protections afforded to its clients or for providing advice in relation to the Placing or any other matters referred to in this Announcement.

No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Investec or by any of its affiliates or agents as to, or in relation to, the accuracy or completeness of this Announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

The distribution of this announcement in certain jurisdictions may be restricted by law. This announcement is for information purposes only and does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities in the United States, Australia, Canada, Japan or South Africa or in any jurisdiction in which such offer or solicitation would be unlawful and should not be relied upon in connection with any decision, or as any inducement, to subscribe for or acquire any new Ordinary Shares. In particular, this announcement does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities in the United States. No public offer of securities is being made in the United Kingdom or elsewhere.

This announcement is not an offer of securities for sale or a solicitation of any offer to purchase securities in the United States. Placing Shares may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended (the "US Securities Act") or an exemption therefrom. The Company has not and does not intend to register any securities under the US Securities Act and does not intend to offer any securities to the public in the United States. No money, securities or other consideration from any person inside the United States is being solicited and, if sent in response to the information contained in this announcement, will not be accepted. The