A BUDGET hotel chain founded by a low-cost airline boss says it will continue to expand after revealing buoyant financial results.

Easyhotel said revenues for the year to September 30 increased 34 per cent to £3.5m.

It added pre-tax profits lifted 15 per cent to £2m, with overall profit standing at £1.3m.

The growing company, set up by Easyjet entrepreneur Sir Stelios Haji-Ioannou, operates 20 hotels in 13 European cities, with sites in Amsterdam, Berlin, Dubai, Edinburgh and London.

Earlier this year, the firm listed on the AIM, also known as the Alternative Investment Market, raising £24m, which bosses said will be invested back into its hotels.

They added it expects to open two franchise hotels in early part of next year and extend its presence further across Belgium, the Netherlands and Luxembourg.

Simon Champion, chief executive, said: “The group has made good progress during the year with strong performance from our owned hotels and across our franchised hotels.

“We have a strong brand with international recognition and our expansion plans are taking shape.

“We are confident we can secure owned properties for conversion in key European gateway cities, as well as expand the franchised estate.”

Mr Champion revealed Easyhotel increased its number of owned hotel rooms by 195 in the year to 287, with expansion taking place at a base in Old Street, London.

He added: “Trading is healthy and we remain confident on the outlook for 2015, particularly given our recent refurbishment investment at Old Street and other initiatives that are underway.”

The Easyhotel venture was launched by Sir Stelios as part of a raft of Easy brand extensions, which also include gyms, property listings and even pizza delivery.

He launched the Easyjet airline in 1995, and it now flies nearly 65 million passengers a year to more than 30 countries.