, the owner and operator of contemporary hostels revealed in a trading update that revenues were up 39% to £14.6 million and occupancy was up 75.6%.
The company attributed the growing popularity of adventurous travellers and the increasing numbers of families doing city breaks as drivers behind the strong trading performance.
Hostels as a value offering seems to be performing well as the ability to target both younger and older travellers allow the offering to have good reach.
At an annual growth rate of 5%*, the contemporary hostel market is the fastest growing segment of the accommodation sector according to a document released by the company.
Shares in Safestay were up over 5% to 35.5p at the end of the day following the announcement.
Larry Lipman, Chairman of Safestay, said: "The focus is to grow the brand and the Company has the capital to support an increase from the 13 sites today to over 20, at which point the business will become self-funding and increasingly gain from economies of scale and brand growth."
It now has 2762 beds in Europe after the acquisition of properties in Barcelona, Brussels and Vienna, and it has 15 other cities identified to be potential further acquisitions.
Follow News & Updates from Safestay 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.
- Amerisur Resources shares rally after indicating potential sale
Abraham DarwyneCompany News - 2 min read19th Jul 2019Amerisur said: “In light of the high level of recent activity in the Colombian E&P sector, it has decided to conduct a formal review of the various strategic options available to the Company to maximise value for shareholders.”
- SP Angel . Morning View . Gold and copper take-off on prospect of deep Fed rate cut
19th Jul 2019SP Angel research note on commodities and miners, featuring: BlueRock Diamonds* (BRD LN) – 12.2ct diamond sold for US$105,000 Cora Gold* (CORA LN) – Drilling returns good grades in the sulphide mineralisation at Selin Highland Gold (HGM LN) – Q2 production update Solgold* (SOLG LN) – Expanding the drilling fleet to expedite the PFS
- Minds + Machines announces share buyback after strong growth in first half year
Abraham DarwyneCompany News - 2 min read18th Jul 2019Toby Hall, CEO of MMX, told investors: “Our revenues are increasingly predictable, with healthy channel sales and strong renewal revenues now driving the business forward.”
