Safestay (SSTY) revealed in a trading update on Monday it experienced a 25% growth in revenue to £18.3 million, and a bump in like for like revenues to 7%, during the 2019 year.
The hostel owner and operator said earnings were up 11% to £3.8 million, and revealed a 43% growth in F&B revenues, which now make up 14% of its total sales.
Safestay also told investors in the update that the first month of 2020 and forward bookings for Q1 are “very encouraging”.
The company reported a 77.3% occupancy rate, up from 75.6%, and a £1 bump to its average bed rate from £20.3 to £21.3.
Larry Lipman, Chairman of Safestay, commented: "In 2019 we near doubled the size of the Safestay network. In doing so, the Safestay brand has become Europe's leading premium hostel network totalling 21 sites, all in sought-after central locations in the UK and Europe's best known cities.”
Mr. Lipman said Safestay is positioned to sell over a million bed nights in 2020.
He added: “Trading in 2019 was good, all key indicators were strongly positive, in particular the organic growth performance, and critically we have yet to really benefit from the recent acquisitions agreed towards the end of the year.”
Safestay said its investment into its IT booking systems continues to pay off, as it adds new hostels which benefit from the Group’s economies of scale.
Safestay now operates hostels in 18 locations throughout Europe and the UK, with 3 under development to be released in 2020 and 2022.
Safestay said its acquisition of its Prague hostel will take place in the next few weeks.
In the same update, Safestay said it agreed to a new 5 year £23 million loan facility with HSBC, replacing the previous £18 million 5 year facility agreed in 2017, with the same terms and interest rate of 2.45% + LIBOR.
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