Consumer awareness of hostel accommodation sees Safestay's turnover soar by 43%
Safestay has reported a 43% increase in revenue to £10.6m as "growing awareness amongst consumers" has a positive impact on the luxury hostel brand.
For the 12 months to 31 December 2017, turnover for the UK arm of the business grew by 15% to £8.5m and like-for-like occupancy increased by 13.5% to 74% with average bed rate at £20.
In particular, Kensington Holland Park significantly increased occupancy by 32% to 73% over the previous year.
During the period, the brand acquired U Hostels which comprised two sites in Madrid and one 260-bed conversion project in Paris. The Madrid sites included a 226-bed luxury hostel and apartment block made up of 34 apartments.
The total number of beds increased from 1,526 to 2,306 over the period with 330 additional beds to come once the Paris conversion opens and an extension to the exiting Elephant and Castle site is complete.
Larry Lipman, Chairman of Safestay, said: "The hostel market has grown substantially in the last few years and a key driver has been the growing awareness amongst consumers of what staying in a contemporary hostel offers them. As a result, momentum is good and Safestay is benefiting from market growth, much improved operating practices and from being a truly distinct brand at the high end of this market.
Lipman added that the company is focused on growing the Safestay portfolio going forward.
Safestay moves into Europe with acquisition of U Hostels >>
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