International Hostel Operator Safestay Sees Revenues Rise 60% Following Acquisitions
AIM-listed international hostel owner has seen total revenues rise by 60% in the first half of 2018, driven by strong occupancy rates in the UK.
The international hostel owner & operator posted revenues of £6.5m in its interims today, up from £4.1m in the previous period in 2017.
This figure includes £2.4m from new acquisitions that were made in 2017 - the group having acquired six European hostels last year, including a 351 bed hostel in Barcelona for €3m.
Elsewhere in the interims report, the group's occupancy rates increased from 71.6% to 76.1% and group EBITDA remained stable at £1.3m.
Safestay Chairman Larry Lipman said: "This has been a successful six months. The Group is performing to plan and the new hostels have been quick to integrate under the Safestay brand and operating structure.
“Alongside benefitting from the continuing growth in awareness and popularity of modern hostels, we have significant opportunities internally to increase returns from our young portfolio and we will also shortly benefit from the investment we have made in expanding our Elephant & Castle and Madrid hostels.
“Safestay is therefore well positioned for further organic growth and to continue to pursue our acquisition programme.”
See the full interim report here
The company now operates 2,618 beds in 10 properties across four European and three UK cities.
For the second half of 2018, the company expects to see the “full benefit” of the 351 bed Barcelona property, as well as to complete the acquisition of an 80 bed extension at its Elephant & Castle hostel.
Next year, Safestay will construct a 226 bed Paris hostel that is expected to be complete by the end of 2019, and said it has “good prospects” for further acquisitions.
Follow news & updates about Safestay (SSTY) here:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.