Safestay delivers strong earnings as it continues European roll-out
Abraham Darwyne
Company News- 2 min read
17:52, 5th February 2019

Safestay (SSTY) FOLLOW, 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: FOLLOW

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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.

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