Owner and operator of an international brand of contemporary hostels, Safestay (SSTY) , announced on Friday its acquisition of a new Berlin hotel, expanding its European portfolio of hostels to 18.
Having already increased its network by a third, the group have set themselves on track to meet its target of having a total 20 hostels by 2020.
This acquisition of Hotel Auberge in central Berlin for €1.2 million marks the fifth transaction over the last five months for Safestay, complementing the group’s recent acquisitions in Pisa, Glasgow and Venice.
The group will convert Hotel Auberge, which is currently operating as a 32 bedroom hotel, into a 150 premium bed Safestay Hostel.
WIth its position in the centre of a key tourist city that attracts around 13.5 million annual visits, Auberge is naturally considered “a perfect fit” as premium hostel site, Safestay explained.
“Acquiring existing leaseholds enables us to expand our reach more rapidly throughout Europe and gives us operating platforms which are immediately cash accretive,” said Larry Lipman, Chairman of Safestay.
The transition into a hostel, to be completed during the first quarter of 2020, is expected to “transform” the earnings potential of the site, delivering revenue growth and immediate benefits as a part of the fast-growing Safestay network.
“Our operational success confirms we have established the Safestay model as the right one for our guests,” added Mr Lipman, “and our focus is now firmly on expanding our network and making Safestay one of the largest hostel operators in Europe.”
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