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Escape Hunt Acquires Middle East Master Franchise
Thursday 22 October 2020

UK-based escape-the-room experiences provider Escape Hunt plc (AIM: ESC) has completed the acquisition of its Middle East master franchise partner, Escape Hunt Entertainment LLC subject only to a formal registration of the sale which is scheduled to take place on 22 October 2020, the company said.

The Dubai site is re-opening for business this week under Escape Hunt's control.

EHE owns and operates an escape room site in the Galleria Mall in Dubai and also has sub-franchise relationships for four sites in the region.

As a result, the Dubai site will become an 'owner managed' site alongside the company's existing estate in the UK and the sub-franchisees will become direct franchisees.

Together with Basingstoke and Cheltenham, which are currently in build, this takes the total number of owner managed sites to 13 with a further two sites in legals.

The management team from EHE has been retained and will continue to run the business in the area.

The acquisition is expected to significantly increase the contribution from the region.

In 2019, the Dubai site had turnover of approximately GBP 490k and the company would expect to run the site on similar operating metrics to a UK site.

In addition, with the Dubai site becoming a 100% beneficially owned subsidiary, Escape Hunt's revenue share from the Middle East sub-franchisee network will rise from 5% to 10%.

The Escape Hunt Group is in providing escape-the-room experiences delivered through a network of owner-operated sites in the UK, an international network of franchised outlets in five continents, and through digitally delivered games which can be played remotely.

Its products enjoy consistent premium customer ratings and cater for leisure or teambuilding, in small groups or large, and are suitable for consumers, businesses and other organisations.
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Date Published: 22/10/2020

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