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Safestay has announced that trading for the year ended 31 December 2023 is expected to be “comfortably” in line with market expectations, with sales expected to hit £22.5m, up from £19.1m the prior year.
Occupancy over the year increased to 71.4%, up from 63%, though this still remains below historic levels, while the average bed rate maintained at £23.74.
Over the period, the hostel group completed the acquisition of Edinburgh Hostel in October for £4.3m. The building required some renovation and investment which is now underway and the site will be ready to open in advance of the key summer months, as planned.
Looking ahead, forward bookings, as at 1 January 2024, are up twofold to £3.9m, up from £1.9m the previous year.
Larry Lipman, chairman of Safestay, said: “This performance demonstrates that demand for our product has come back stronger than before the pandemic, and represents an opportunity for Safestay to grow in this exciting market.
“Our objective is to further build the business and we are very focused on doing so through a careful mix of organic and acquisition led growth.”
