Greek entrepreneur Stelios Haji-Ioannou confirmed that he had bought the first property for his EasyHotel venture but said it was not the start of a spending spree.
Speaking at this week’s International Hotel Investment Forum in Berlin, the EasyJet founder said he had bought the freehold of a listed building on Lexham Gardens, London W8, just off Cromwell Road.
The building previously offered accommodation for Greeks coming to London for medical treatment.
It will be developed as a 25-room budget hotel.
Rooms will be from just 90 sq ft and prices will start at £5 per night depending on demand.
Sources suggested the property would have cost the entrepreneur around £80,000 per room.
However, the acquisition is not the start of a property spending spree, Haji-Ioannou told Estates Gazette.
He said: “The others will be franchised to bed and breakfast owners who know their own real estate.
“I have a lot of experience in dealing with franchisees.”
Haji-Ioannou said he is still working on the design for the pilot hotel at Lexham Gardens.
“We are researching with the architect whether it is necessary to give a window to every room.
“To maximise the use of the floorplate we might be forced to create windowless rooms, which are common on cruise ships.”
In February, Haji-Ioannou sold EasyJet shares worth around £14m to finance the hotel acquisition as well as the purchase of a cruise ship and 10 minibuses for his other new ventures.
References: EGi News 18/03/04
