Hotel Brands

Safestay revenues jump £4.1m in 2018

Safestay, which owns and operates contemporary hostels, saw revenues jump 39% to £4.1m in 2018.

The group added there was an 8% increase in like-for-like sales in mainland Europe during the year, with group like-for-like sales up 1% to £10.6m, compared with £10.5m in 2017.

However, like-for-like sales decreased by 1% in the UK due to the disruption from adding 73 beds to its Elephant and Castle property.

Additionally, occupancy grew to 76% in 2018, compared with 73% in 2017, and the group reported adjusted EBITDA of £3.4m and a reduction of loss before tax to £0.60m, compared with £0.86m the previous year.

Chairman Larry Lipman said: “2018 was a positive year for the business and I am confident that 2019 will deliver continued growth. The portfolio is maturing and shows the benefits of the Group gaining from economies of scale, geographic spread and group wide automation.

“This, together with continuing global demand for the modern hostel experience means we are well placed to sell an increasing number of bed nights in 2019 and add further destination cities to our portfolio.”

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