Hostel Group Safestay has reported a loss before tax of £0.8m, despite experiencing a 60% rise in revenue to £6.5m.
For the six months ending 31 June, Safestay posted a 50% increase in Hostels EBITDA to £2.4m with group EBITDA stable at £1.3m the same as the previous year which it said “reflected planned investment in central organisation”.
The company also reported that UK hostel occupancy increased to 76% (2017: 72%) driven by particularly strong performances in Holland Park and York.
Safestay announced that during the six months it acquired six European hotels including a 351 bed hostel in Barcelona and that Mainland Europe now represents 43% of its bed stock and 43% of the total turnover in the first six months of 2018.
The company revealed that group trading is expected to be in line with expectations and it will expect to “see the full benefit of H2 from the 351 bed Barcelona Passeig de Gracia hostel”.
Larry Lipman, chairman of Safestay, 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.”