Safestay gives bright outlook as bookings surge
By Benjamin Chiou
Date: Friday 07 Jun 2024
(Sharecast News) - International hotels and hostels group Safestay saw losses widen in 2023 despite revenues rising by nearly a fifth, but gave an optimistic outlook with forward bookings up significantly so far this year.
The company, which operated out of 16 hostels and hotels across 14 European cities in 2023, reported a net loss of £1.3m, compared with £0.1m in 2022, after taking a £1.0m impairment charge in Bratislava.
Nevertheless, adjusted EBITDA was up 15% at £6.8m, as revenues increased 18% to £22.5m. Occupancy during the period rose to 71.4%, up from 63% the year before, while the average bed rate edged higher to £23.74 from £23.63.
Meanwhile, forward bookings at the end of the year were £3.7m, up from £1.9m the year before.
Since the start of 2024, Safestay has added two Spanish hostels and one UK hostel to its network, and on Friday announced the £2.3m acquisition of a freehold property in Brighton which it expects to turn into a 220-bed hostel, taking its network to 20.
"I am delighted to see that our pipeline is a strong as ever, with forward bookings up significantly at the beginning of the year. We are in a strong position to grow the business organically and there is a huge opportunity to grow our group bookings," said chairman Larry Lipman.
"Acquisitions will also play their part in driving growth. We have three new hostels due to come on stream this summer and I have no doubt that they will prove to be fantastic additions to our portfolio."
The stock was up 6.3% at 21.25p in early trading on Friday.
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