Tycoon snubs easyHotel bid

THE billionaire founder of easyJet has urged investors to block a £127m bid for the group’s sister business easyHotel, saying the offer is too low.

Shares in the budget hotel firm soared by more than 34pc to 94.5p following the 95p per share joint offer by Canadian investment fund Ivanhoe Cambridge and Luxembourg-based iCAMAP investments, easyHotel’s largest shareholder.

But easyJet tycoon Sir Stelios Haji-ioannou told shareholders to vote against the deal.

He owns almost 30pc of easyHotel through his easyGroup investment company.

‘I find the offer from iCAMAP to be very low and i urge all other shareholders to take no action until the true value and future potential of easyHotel can be evaluated,’ he said.

EasyHotel listed in 2014 at 80p per share. iCAMAP took a stake two years later, which it has been gradually increasing. it now owns a 38pc holding.

ICAMAP wants to invest in easyHotel to fund a rapid expansion across europe.

The chain was set up in 2004 and has 38 budget hotels worldwide in locations including Spain, Belgium, United Arab emirates and the Uk.

It has not yet been decided if easyHotel will remain public or go private should the deal be accepted. Harm Meijer, managing director of iCAMAP, said: ‘We believe that the change of ownership which our offer will deliver is essential to enable easyHotel to navigate the current market uncertainty and to thrive in the future.’

Shares in easyHotel closed up 33pc at 94p.