Safestay revenues jump 24% in half-year results

Aparthotel brand Safestay has reported a 24% increase in revenues to £8.1m the six months ended 30 June 2019, with £2m of revenue coming from acquisitions made in 2018 and 2019.

Revenue from non-UK hostels now represents 47% of its total revenues. Adjusted EBITDA increased to £1.4m, compared with £1.3m during the same period last year. EBITDA from hostels (excluding central costs) was “stable” at £2.4m.

Larry Lipman, chairman of Safestay, said: “2019 has to date been good for trading seen in the 24% increase in sales for H1 and for expansion with the acquisition of three new hostels which once completed will add 1,000 beds increasing the portfolio by nearly one third.

“Alongside this, our platform is now established, and we can therefore add to our portfolio without materially adding to our structure or central costs so that our economies of scale will increasingly come into play as we move to our 2020 target of operating 20 hostels.”

He added: “From a trading perspective, we have yet to see the full benefit from our acquisitions in Vienna, Brussels, Pisa and more recently Glasgow together with the medium-term potential of Paris and Venice.

“We have also shown the underlying value within our property portfolio with the revaluation of Elephant and Castle to £26.8m, an increase of 67% since 2017. Safestay is therefore in an enviable position to continue its positive growth trajectory, building a portfolio of well positioned hostels under a premium, contemporary hostel brand.”