Safestay revenues hit record highs in FY24
By Iain Gilbert
Date: Monday 03 Feb 2025
(Sharecast News) - Hostel operator Safestay said on Monday that revenues hit a fresh record high in FY24 despite continued cost-of-living pressures impacting its core young traveller demographic.
Safestay said revenues had grown 2% to £23.0m, driven by a 10% increase in total bed nights to 931,688 and a 3.8% increase in occupancy rates to 75.2%.
On the other hand, total revenue per available bed contracted from £18.93 to £18.56 and adjusted underlying earnings slipped from £6.8m in FY23 to £6.5m in FY24.
Safestay also stated that whilst the macroeconomic and competitive backdrop was expected to remain "challenging" in FY25, forward bookings at 1 January were up 27% year-on-year at £4.7m.
Chief executive Larry Lipman said: "Whilst cost-of-living pressures continued to impact our customers and the pricing environment during the year, we were pleased to achieve year-on-year revenue growth supported by our ongoing focus on balancing increasing occupancy whilst also maintaining RevPAB.
"We enter 2025 in a strong position as one of the leading international operators in a highly fragmented, sizeable and growing market. In addition to remaining focused on delivering organic growth through our operational initiatives, we will continue to actively evaluate new opportunities where well located, attractive sites become available, including through acquisition and lower capital routes to market where we can leverage our brand, operational capabilities and market understanding."
As of 0905 GMT, Safestay shares were up 2.13% at 24.0p.
Reporting by Iain Gilbert at Sharecast.com
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