Safestay PLC Acquisition (2449R)
October 28 2019 - 3:00AM
UK Regulatory
TIDMSSTY
RNS Number : 2449R
Safestay PLC
28 October 2019
28 October 2019
Safestay plc
("Safestay", the "Company" or the "Group")
Acquires Athens Hostel
Safestay (AIM: SSTY), the owner and operator of an international
brand of contemporary hostels, is pleased to announce that it has
exchanged contracts to acquire the prime boutique hostel AthenStyle
for EUR1.5 million. Completion of the purchase is scheduled for 15
January 2020.
The 150 bed AthenStyle hostel first opened in 2008 and is a
well-established base for visitors to explore the City. The hostel
is centrally located, surrounded by boutique cafes and bars and
within easy walking distance of the City's famous historical sites.
Well known for its rooftop bar offering 360-degree views of the
City and out across to the Acropolis, AthenStyle is a very popular
independent hostel.
Athens has always been, and will no doubt continue to be a
leading European city attracting up to 5.5 million visitors each
year.
For the 12 months to December 2018, AthenStyle generated sales
of EUR0.7 million and EBITDA of EUR0.2 million. The property is
being acquired on an 18-year lease. The total consideration of
EUR1.5 million, which is also the value of the assets being
acquired, will be satisfied from the Group's existing cash
resources.
Following this acquisition, the Group's portfolio consists
of:
-- 5 sites in the UK: Glasgow, Edinburgh, York and two in London
-- 12 sites in Europe: Athens, Brussels, Lisbon, Madrid, Paris,
Pisa, Prague, Venice, Vienna and three in Barcelona. Paris and
Venice are both under development.
-- Approximately 4,200 beds across all 17 hostels (once fully developed)
Larry Lipman, Chairman of Safestay, said:
"AthenStyle is a strong addition to our portfolio as it is
already popular, stylishly designed and sits right in the heart of
the City. It will be a straightforward process to re-brand the
site, integrate with our cloud-based booking systems and should be
immediately earnings enhancing.
The last 4 months has been an active transaction period with new
sites added in Pisa, Venice, Glasgow and now Athens which means
Safestay guests can now stay with us throughout the UK and Europe
in any one of our 17 individually unique hostels.
Importantly, the hostel market continues to grow and Safestay is
carving out its own reputation for offering guests stylish, safe
accommodation in beautiful often listed buildings, in the centre of
the principal cities of Europe and still for just c. GBP20 per
night.
In a short period, the bed capacity of the portfolio has
expanded by one third and is on the cusp of really showing the
benefits from our increasing economies of scale."
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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