Safestay PLC Acquisition (6833M)
September 18 2019 - 2:00AM
UK Regulatory
TIDMSSTY
RNS Number : 6833M
Safestay PLC
18 September 2019
18 September 2019
Safestay plc
("Safestay", the "Company" or the "Group")
Acquisition of Glasgow Hotel
Safestay (AIM: SSTY), the owner and operator of an international
brand of contemporary hostels, is pleased to announce that it has
agreed to acquire the freehold of its fifteenth hostel, currently
operating as 'Best Western Glasgow City Hotel', for GBP3.15
million. Completion of the acquisition is expected to take place on
21 October 2019.
The acquisition of the 52-bedroom hotel is part of the Group's
strategy to create a pan-European network of premium hostels in
leading cities. Located on Elmbank Street in the heart of the City,
the hotel is a short walk from Charing Cross railway station
providing fast transport links to Edinburgh and other regions.
Safestay already operates a successful site in Edinburgh and
therefore the acquisition of Safestay Glasgow is a natural
extension enabling the Group to market both cities. As with the
acquisition of other hotels by Safestay, the Company intends to
convert this site into a hostel and outline planning permission
already exists for conversion into a 200 bed hostel.
Glasgow, the largest city in Scotland, was the fourth most
visited UK city from overseas outside London in 2018, globally
renowned for its gothic style architecture such as the famous
Glasgow Cathedral.
The property is freehold and in the 12 months to 31 January 2019
generated revenues of GBP0.82 million. The total consideration of
GBP3.15 million will be satisfied in cash from the Group's existing
cash resources.
Following this acquisition the Group's portfolio now consists
of:
-- 5 sites in the UK: Glasgow, Edinburgh, York and two in London
-- 10 sites in Europe: Brussels, Lisbon, Madrid, Paris (under
construction), Pisa, Prague, Vienna and three in Barcelona
-- Approximately 3,500 beds across all 15 hostels
Larry Lipman, Chairman of Safestay, said:
"Given the success of our 615 bed Edinburgh hostel which we
acquired in 2015 and now considered to be a flagship site within
our portfolio, we have been looking for sometime to find the right
site in Glasgow. We are therefore very pleased to have secured this
excellent building which is ideally suited to being a hostel,
providing an excellent base to explore Glasgow from. We very much
look forward to Safestay Glasgow becoming part of the
portfolio."
Enquiries
Safestay plc +44 (0) 20 8815 1600
Larry Lipman
Canaccord Genuity Limited
(Nominated Adviser and Broker) +44 (0) 20 7523 8000
Bobbie Hilliam
Novella +44 (0) 20 3151 7008
Tim Robertson
Fergus Young
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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