Safestay acquires Athens hostel for €1.5 million
, on Monday announced it has exchanged contracts to acquire the boutique hostel AthenStyle, for €1.5 million cash.
First opened in 2008, the hostel has 150 beds and is centrally located within walking distance of Athen’s famous historical sites.
Larry Lipman, Chairman of Safestay, said: "AthenStyle is a strong addition to our portfolio as it is already popular, stylishly designed and sits right in the heart of the City." He added that the acquisition is expected to be “immediately earnings enhancing.”
Last year, the hostel generated sales of €0.7 million and EBITDA of €0.2 million.
The completion of purchase is set for 15 January 2020 and was acquired under an 18 year lease.
Mr. Lipman told shareholders: “The last 4 months has been an active transaction period with new sites added in Pisa, Venice, Glasgow and now Athens which means Safestay guests can now stay with us throughout the UK and Europe in any one of our 17 individually unique hostels.”
Safestay will have approximately 4,200 beds across 17 hostels once all of its development work is complete.
Mr. Lipman added: “In a short period, the bed capacity of the portfolio has expanded by one third and is on the cusp of really showing the benefits from our increasing economies of scale."
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