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Safestay has expanded its portfolio with the acquisition of three U Hostels-branded properties.
The group took on the European brand for a cash consideration of €3m (£2.6m).
This includes two Madrid properties; a 15-year lease with a 226-bed luxury hostel, and an apartment block with one and two-bedroom apartments which will open in 2018. Its third property is a 2,300sqm building which will be converted into a 260-bed hostel which is due to open in 2019.
The contract will bring Safestay’s portfolio up to seven, including its properties in London, York and Edinburgh.
Larry Lipman, chairman of Safestay, said: “The U Hostels concept of what makes a modern luxury hostel is similar to ours, in terms of providing guests with the opportunity to stay in unique, stylish buildings, located centrally in gateway European cities. The U Hostels portfolio is therefore an excellent fit with us.
“This transaction also represents our first step in establishing a pan-European network of Safestay hostels.
“Going forward, we will be able to offer guests the ability to transfer seamlessly between Edinburgh, York, London, Paris and Madrid. All great cities and we expect this network to be expanded as we have further transactions under advanced negotiation and the capital in place to complete them.”
