The fast-expanding Staycity, which now operates nearly 3,000 apartments across 12 European cities, said the increase is on the back of an increase in occupancy and a rise in average daily rates (ADR).The group saw occupancy grow by 2.2% in the first half of the year, to an average of 86.4% across the group, with UK properties seeing a 2.5% increase to 85.8%.
Despite “concerns” over Brexit, Staycity said it is anticipating an 18% rise in turnover to €81m (£72.2m) for 2019, and an 11% boost in EBITDA to €8m (£7.1m).
Tom Walsh, Staycity co-founder and CEO, said: “Despite this year proving challenging for the hotel sector with increasing cost pressures this performance demonstrates the strength of demand for our product as we continue to expand across Europe.
“The challenges in the UK are well documented and although we are encouraged by the increase in occupancy for our UK-based properties, we are already witnessing a softening of demand for corporate travel.”
He added: “Over 65% of our revenues are currently generated in the UK and we believe a hard Brexit will impact GDP and consequently reduce demand for hotel accommodation, this along with a devaluation of sterling is likely to create significant headwinds which we must prepare for.
“Fortunately, we do not have a large food operation and our team turnover is significantly below the industry average, therefore a rise in input inflation and any immediate restriction on European migration will have less of an impact on Staycity than other businesses in the hospitality sector.”
Over the past few weeks Staycity has opened sites in Venice Mestre and Paris Marne-la-Vallée, with properties in Berlin and Edinburgh coming on stream before year-end and a 224-apartment property due to open in Manchester’s Northern Quarter at the beginning of 2020.
The company also announced further property signings in London, Dublin, Berlin and Frankfurt, amounting to 500 apartments in major UK cities and 850 apartments in Germany.
Walsh added: “We are on target to achieve our aim of operating 15,000 apartments by 2023 and I’m delighted with the recognition our two brands – Staycity Aparthotels and Wilde Aparthotels by Staycity – are receiving. I’m also extremely proud of our operations team who have this year delivered our best ever guest satisfaction scores.”