29 January
2024
Safestay
plc
("Safestay", the "Company" or the "Group")
Trading
Update
"Good Performance in 2023 -
Comfortably in line with Market Expectations"
Safestay (AIM: SSTY), the owner and
operator of an international brand of contemporary hostels, is
pleased to announce that trading for the 12 months to 31 December
2023, is expected to be comfortably in line with market
expectations*.
Highlights:
·
Sales expected to be £22.5 million (2022: £19.1
million)
·
Occupancy increased to 71.4% (2022:
63%)
·
Average bed rate maintained at £23.74 (2022:
£23.63)
·
Completed the acquisition of Edinburgh Hostel in
October for £4.3 million
·
Forward bookings, as at 1 January 2024, up twofold
to £3.9 million (2023: £1.9million)
·
Today the Group has separately announced a
refinancing, extending its debt facilities out to 2029
*Analyst coverage forecast revenue of £21.2 million and EBITDA
of £6.7 million for the 12 months to 31 December
2023
The appeal of Safestay's portfolio
of premium hostels has remained strong amongst its core customer
base of young travellers, families, and business travellers
resulting in 848,633 bed nights in 2023. The popularity of the
brand and the strength of the locations enabled the Group to
achieve a good performance over the course of the year.
In October, the Group completed the
acquisition of a 225 bed hostel in the centre of Edinburgh for £4.3
million. The building required some renovation and investment which
is underway and the site will be ready to open in advance of the
key summer months, as planned.
In 2023 occupancy increased to 71.4%
(2022: 63%). This still remains below historic levels providing
further opportunity for improvement. One customer segment that is
recovering from the effects of the pandemic is large school and
college group bookings with forward bookings of £2.7 million, as at
1 January 2024, against £0.9 million in 2023. Overall, total
forward bookings are up twofold to £3.9 million.
Average bed rate remained at a good
level of £23.74 (2022: £23.63). This represents a step change in
pricing since pre-pandemic levels. Maintaining this level of bed
rate combined with increasing occupancy is a key driver of future
growth.
Larry Lipman, Chairman of Safestay, said,
"This performance demonstrates
that demand for our product has come back
stronger than before the pandemic, and represents an opportunity
for Safestay to grow in this exciting market. Our objective is to
further build the business and we are very focused on doing so
through a careful mix of organic and acquisition led
growth."
Enquiries:
Safestay
plc
Tel: +44 (0) 20 8815 1600
Larry Lipman
Liberum (Nomad
& Joint Broker)
Tel: +44 (0) 20 3100 2000
Andrew Godber / Edward Thomas / Josh
Borlant
Novella
Tel: +44 (0) 20 3151 7008
Tim Robertson / Safia Colebrook
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/