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No-frills easyHotel to open in Budapest next spring

Low-fare airline easyJet is to open an easyHotel in Budapest in spring. The easyHotel will be the third in Europe, easyJet founder Stelios Haji-Ioannou announced at a press conference in Budapest on Monday.

The hotel will be run under a franchise agreement by Medscan Kft. Kornél Tokics, one of MedScan's owners, said the 60-room hotel, which will cost 210 million forints (€810,000) to set up in Budapest’s District 6, is expected to have occupancy of at least 60%-65%. Because bookings will only be made online, and because guests will pay for some services, such as fresh towels, separately, rates will be lower than at conventional hotels, starting at €29 a night and not rising too far over that, Tokics said. He added that MedScan plans to recoup its investment in ten years.
Haji-Ioannou said franchise partners must pay a one-off fee of ₤25,000, followed by 5%-7% of annual revenue. One easyHotel is already operating in London and another will soon open in Basel. 41 more will open in London, as well as India, the Middle East and Africa in the coming five years, he said.