Safestay PLC Acquisition (6579D)
October 11 2018 - 2:00AM
UK Regulatory
TIDMSSTY
RNS Number : 6579D
Safestay PLC
11 October 2018
11 October 2018
Safestay plc
("Safestay", the "Company" or the "Group"
Acquisition of Brussels Hotel
Safestay (AIM: SSTY), the owner and operator of an international
brand of contemporary hostels, is pleased to announce that it has
acquired its eighth European property, currently operating as Hotel
Opera in central Brussels, for EUR1.6 million.
Positioned on Rue Grétry just off Brussel's famous Grand Place,
considered one of the world's most beautiful squares, the 50
bedroom property known as Hotel Opera, is an independent hotel that
has been popular with visitors to the Belgian capital for over 30
years. Consistent with the Company's strategy of acquiring
properties that can be successfully developed into a Safestay
hostel, Hotel Opera is well located and can be rebranded and
converted into a 200 bed hostel relatively quickly.
The property is leasehold with a remaining term of five years
and an option to extend to 2032. The total consideration of EUR1.6
million will be satisfied by a cash payment of EUR1.4m, from the
Group's existing cash resources, and the assumption of EUR200,000
of debt. The conversion of Hotel Opera is expected to complete by
the end of January 2019 and cost c. EUR200,000.
The Group's portfolio now consists of:
-- 12 premium hostels located in Brussels, Paris (under
construction), 3 in Barcelona, Madrid, 2 in London, Edinburgh,
York, Lisbon and Prague.
-- 2,842 beds with a further 330 beds to be added with the
completion of the Paris hostel and the extension to Elephant &
Castle.
Brussels is a gateway city into Europe for the UK and only 1
hour's travel from London. The acquisition will add to the Group's
exposure to the fast-growing global hostel market.
Larry Lipman, Chairman of Safestay, said:
"Hotel Opera has been a good hotel but we believe we can make it
into an excellent hostel. The building and the central location
combine to make it ideal to attract some of the tens of thousands
of visitors who come to Brussels each month. Given that it is an
operating hotel, conversion will be quick and many of the existing
operating team will continue under the Safestay brand. We expect
the transaction to be immediately earnings enhancing.
We are executing on our ambitious roll out plan and we look
forward to completing further similar deals in other prime city
locations."
To listen to COO Nuno Sacramento's views on the popularity of
Brussels within the European hostel market and why Hotel Opera will
make an ideal Safestay Hostel, click here or enter the following
URL into your browser https://bit.ly/2Eo0TjB.
Enquiries
Safestay plc +44 (0) 20 8815 1600
Larry Lipman
Canaccord Genuity Limited
(Nominated Adviser and Broker) +44 (0) 20 7523 8000
Chris Connors
Martin Davison
Novella +44 (0) 20 3151 7008
Tim Robertson
Toby Andrews
For more information visit our:
Website www.safestay.com
Vox Markets page
https://www.voxmarkets.co.uk/company/SSTY/news/
Instagram page www.instagram.com/safestayhostels/
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END
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