Safestay PLC Long term lease signed for new hostel (3959Y)
December 01 2014 - 2:00AM
UK Regulatory
TIDMSSTY
RNS Number : 3959Y
Safestay PLC
01 December 2014
1 December 2014
Safestay PLC
("Safestay" or "the Company")
Long term lease signed for new hostel
Safestay (AIM: SSTY), the owner and operator of luxury hostel
brand, is pleased to announce that it has secured a 50 year lease
to open a new 380 bed Safestay hostel in Holland Park, West London.
The building, comprising 24,000 sq. ft., is owned by the Royal
Borough of Kensington and Chelsea and has until recently operated
as a YHA Hostel.
The building, which is a listed property and was formerly a
Jacobean mansion, is located in the centre of the park and
represents a remarkable location from which to operate a
contemporary hostel and will provide Safestay guests with the
opportunity to stay in the heart of one of central London's most
desirable locations with excellent transport links. The property
comprises the original building which dates back to 1607 along with
a 1950's extension to create a central courtyard and garden space.
The management expects strong demand from guests once the hostel
re-opens in April 2015 after a comprehensive refurbishment.
Once completed, Safestay will have two hostels in central London
with almost 800 beds. The cost of refurbishment is expected to be
approximately GBP2.0 million, for which the Board is reviewing the
financing options.
The European hostel market, after years of under-investment, is
currently undergoing a transformation as schools, colleges,
universities, young adults and increasingly cost conscious families
and business travellers become aware of the opportunity to stay in
safe, stylish and contemporary accommodation in central urban
locations across Europe for approximately GBP20 per person per
night. A feature of this market, which Safestay is benefitting
from, is that having stayed at one of its hostels, guests and, in
particular, groups are becoming repeat customers who are booking
well in advance and the Company has good visibility of bookings for
2015.
Safestay's management team, led by its Chairman Larry Lipman,
has made clear its intention to establish a European wide network
of Safestay hostels. Today, there are two operating luxury Safestay
hostels (in London and in York) and the Company intends to open a
further 25 sites over the next few years, of which, 4-6 will be in
London. The management team has substantial previous experience of
developing and rolling out new brands and concepts, having been
responsible for the creation and successful roll-out of Safestore
plc, Bizspace plc and Hercules Property Services plc.
Commenting on the signing of the lease, Larry Lipman, Chairman
of Safestay, said:
"This is an iconic building in the heart of central London. We
are delighted to have secured it against tough competition and we
believe that the overall appeal of the building, combined with its
unique location within Holland Park itself, will mean it soon
becomes one of London's flagship hostels."
For further information:
Safestay
Larry Lipman, Chairman Tel: 020 8815 1600
Colin Stone, Finance Director
Westhouse Securities (Nomad and Broker)
Tom Griffiths Tel: 020 7601 6100
Novella
Tim Robertson Tel: 020 3151 7008
Ben Heath
To access Corporate Images of Safetsay
https://www.flickr.com/photos/128855901@N03/
About Safestay:
-- Safestay is a new brand of luxury hostel, designed to appeal
to a broad range of guests. Known as a "boutique hostel" within the
travel industry, it is aimed at providing safe, stylish
accommodation which offers a more attractive alternative to both
traditional hostels and budget hotel accommodation.
-- Established in April 2011 as a joint venture between the
Moorfield Funds and the Safeland Group, the Company then listed on
AIM in May 2014, to widen the shareholder base and raise new equity
to support the European roll-out of the Safestay brand.
-- Today, the Group operates from three sites 2 in London and 1
in York and once refurbishments are complete will have c.1000
beds.
-- The Group wishes to expand the business by the acquisition
and development of further properties and create a branded hostel
group known for providing safe and stylish, but relatively
inexpensive accommodation.
-- The current hostel market is undergoing substantial change,
after years of little of no investment, the concept of staying in
clean, safe, stylish rooms for an average of GBP20 has gained
momentum and there is, in the opinion of the Directors, the
potential for significant growth and sector consolidation.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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