Safestay PLC Acquisition (0289C)
13 June 2019 - 4:00PM
UK Regulatory
TIDMSSTY
RNS Number : 0289C
Safestay PLC
13 June 2019
Safestay plc
("Safestay", the "Company" or the "Group"
Acquires Italian Hostel in Pisa
Safestay (AIM: SSTY), the owner and operator of an international
brand of contemporary hostels, is pleased to announce that it has
acquired the freehold of 'Hostel Pisa' for EUR3.25 million.
The acquisition of the 161 bed Hostel Pisa is part of the
Group's strategy to establish a pan-European network of premium
hostels, located in popular tourist cities. The addition of Hostel
Pisa takes the portfolio to fourteen hostels and with the recent
fund raising and pipeline of potential sites, the Company is well
placed to reach its shorter-term target of owning and operating 20
hostels.
A very popular destination to visit in Italy's famous region of
Tuscany, Pisa attracts over one million visitors each year, all
keen to see its famous architecture from the Cathedral of Santa
Maria Assunta to the Leaning Tower of Pisa.
Hostel Pisa is located in the city centre, around the corner
from Pisa train station and a 15 minute walk from the airport.
Established in 2013, Hostel Pisa is a well maintained successful
business with good quality bedrooms offering a contemporary hostel
experience which fits neatly within the Safestay portfolio. Serving
a true Italian culinary experience to guests sitting in a grape
filled garden, it is a popular choice in this sought after tourist
city.
The property is freehold and in the 12 months to 31 December
2018 generated revenues of EUR0.8 million and EBITDA of EUR0.3
million. The total consideration of EUR3.25 million will be
satisfied in cash, from the Group's existing cash resources. Given
the good condition of the building and facilities, the only
investment required will be to re-brand the building to become a
Safestay Hostel at an approximate cost of EUR50,000.
The Group's portfolio now consists of:
-- 4 sites in the UK: York, Edinburgh and two in London
-- 10 sites in Europe: Brussels, Lisbon, Madrid, Paris (under
construction), Pisa, Prague, Vienna and three in Barcelona
-- 3,297 beds across all 14 hostels
Larry Lipman, Chairman of Safestay, said:
"It is very pleasing to be announcing the completion of this
acquisition. Hostel Pisa is an excellent addition and a natural fit
within our portfolio. Currently it operates independently, and we
are confident that within the Safestay portfolio it has the
potential to excel, taking advantage of our brand, purchasing power
and ability to promote Pisa to guests staying in any of our other
hostels.
The Group as a whole is trading well and in line with market
expectations. Demand has been strong overall and bookings for the
summer look good."
Enquiries
Safestay plc +44 (0) 20 8815 1600
Larry Lipman
Canaccord Genuity Limited
(Nominated Adviser and Broker) +44 (0) 20 7523 8000
Chris Connors
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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