Safestay reports 43% increase in revenue for 2017

Safestay has posted its results for the 12 months ending 31 December 2017 in which the company has “performed strongly in line with market expectations”.

The company that owns hostels throughout the UK and Europe had increased its earnings, revenue and occupancy levels in 2017.

Total revenue grew by 43% in total revenues to £10.6m, while like-for-like occupancy increased by 13.5% to 74%. The company attributed the growth to the expansion of its portfolio.

During 2017 the group made a series of acquisitions increasing the portfolio from four to nine operating hostels plus a development site in Paris, 34 apartments in Madrid under development, and also commenced the extension of its Elephant & Castle property.

The expansion thus brings the number of beds Safestay has from 1,526 to 2,306 plus the 34 apartments and a further 330 additional beds when Paris and the Elephant and Castle extension open.

Commenting on trading, Larry Lipman, chairman of Safestay, said: “The hostel market has grown substantially in the last few years and a key driver has been the growing awareness amongst consumers of what staying in a contemporary hostel offers them.

“As a result, momentum is good and Safestay is benefitting from market growth, much improved operating practices and from being a truly distinct brand at the high end of this market.

“While our 2017 trading performance has been strong and in line with market expectations, we remain focused on growing the portfolio and our marketing platform, both organically and by acting as a consolidator through the acquisition of individual sites and small chains of hostels, as well as procurement of sites for development.

“We have in place the operational backbone to support a much larger business across multiple geographies and we look forward to making further significant progress in 2018.”