REG - Safestay PLC - Leasehold acquisition of Budapest property

SafestayAnnouncement

13/08/2024 07:00

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RNS Number : 1550A  Safestay PLC  13 August 2024

Safestay PLC

("Safestay", the "Company" or the "Group")

Leasehold acquisition of Budapest property

Agreement reflects further strategic expansion in key cities across Europe

 

Safestay PLC (AIM: SSTY), one of Europe's largest hostel groups, is pleased to
announce the acquisition of a leasehold city centre site in Budapest, Hungary,
by its wholly owned subsidiary Safestay Hungary kft.

Following refurbishment, the acquisition will add approximately 150 beds to
Safestay's existing portfolio, which numbers more than 3,580 beds across 18
sites excluding the Group's recently announced Brighton and Calpe Costa Blanca
locations.

The site comprises five storeys and a large courtyard and is located in the
heart of Budapest, a 15-minute walk from the Danube River and close to
Budapest's shopping district as well as the city's bars and restaurants.

Safestay Hungary kft has signed a five-year lease for the property from Curzon
Capital kft and under the terms of the agreement has the option to extend this
over two additional five-year terms. The first eight months of the property's
€150,000 annual rent will be waived while Safestay obtains the required
licence to operate the property as a hostel and, subsequently, refurbishes the
property at an anticipated cost of €600,000. Should Safestay be unable to
secure the correct licence, the agreement will be terminated.

Once operational, the Budapest hostel is expected to contribute estimated
revenue of approximately €350,000 and EBITDA after rent of €50,000 to the
Group during its first year of operation. This is expected to increase as the
site matures.

Safestay's entry into the Budapest hostel market is a natural extension of its
strategy to expand its presence across key European cities and builds on the
Company's Eastern European presence in the Czech Republic, Slovakia and
Poland.

Larry Lipman, Chairman of Safestay, said: "We are very pleased to announce
the acquisition of a leasehold property in the heart of Budapest, a vibrant
European tourist destination. This site has excellent potential and, following
refurbishment, will be a fantastic addition to Safestay's portfolio of
premium, well-located hostels.

This agreement builds on the Group's exciting expansion over the past few
months and reflects continued progress against our growth strategy."

 

ENDS

Enquiries

 Safestay PLC                        Tel: +44 (0) 20 8815 1600

 Larry Lipman
 Shore Capital (Nomad & Broker)      Tel: +44 (0) 20 7408 4090

 Tom Griffiths/Harry Davies-Ball

 Hudson Sandler (Financial PR)       Tel: +44 (0) 20 7796 4133

 Alex Brennan/Lucy Wollam            safestay@hudsonsandler.com

 

For more information visit our:

Website www.safestay.com
(https://url.avanan.click/v2/___http:/www.safestay.com___.YXAxZTpzaG9yZWNhcDphOm86YjBkMWIzZWM0NTkxMzYyMTUyNWNhYTNmNGYyYTE0ZWM6Njo0NjAyOjJkMTBjMzdiYWJhN2RjMThhZDc0NzBhMmYxZDA4ODBkZTUzNTRkNDE1ZTMyMWNhYWIyY2ZhN2I0YjE0NzIwNmM6cDpUOk4)

Vox Markets page https://www.voxmarkets.co.uk/company/SSTY/news/
(https://url.avanan.click/v2/___https:/www.voxmarkets.co.uk/company/SSTY/news/___.YXAxZTpzaG9yZWNhcDphOm86YjBkMWIzZWM0NTkxMzYyMTUyNWNhYTNmNGYyYTE0ZWM6NjoxYWQzOjZjNzA3M2IwNmY1NTI0NjY0N2VmZTk0ZjZiNzBjOWU4ZTVmOGU1YWE0MWY4YzVmNzJiZDk3ODBkNTdhMWVjMTE6cDpUOk4)

Instagram page www.instagram.com/safestayhostels/
(https://url.avanan.click/v2/___http:/www.instagram.com/safestayhostels/___.YXAxZTpzaG9yZWNhcDphOm86YjBkMWIzZWM0NTkxMzYyMTUyNWNhYTNmNGYyYTE0ZWM6Njo3NWU2OmVjMTJmMDBjYzg1MDU4MDI3NGU2YWM2N2U5YTVmOWZiYTg3N2Q3ZDY5Mjk3NTFiNzYwM2ZmMGM1ZTU4MWIzMzI6cDpUOk4)

 

Notes to Editors

About Safestay PLC

Safestay (https://www.safestay.com/) PLC is one of Europe's largest hostel
groups, operating in the fragmented and fast-growing global hostel market that
is expected to be worth $8.9bn annually by 2027*.

 

Safestay's portfolio of 19 premium hostels and one hotel offer guests both
private and shared rooms in destination cities across the UK, Spain, Belgium,
Czech Republic, Germany, Greece, Italy, Poland, Portugal, and Slovakia.

 

The Group currently offers  3,580 beds across its locations and sold 848,633
bed nights in 2023, a 17% increase against the prior year.

 

Safestay's mission at each of its locations is to provide a safe, inclusive,
and enjoyable space that caters to the needs of different travellers. Its
properties offer first-class locations and thoughtful designs that cater for
the different needs of travellers, from digital nomads to backpackers and from
families to group travellers.

 

The company's strong growth momentum continues and during 2024 has announced
the acquisition of a freehold hotel property in Brighton and a hotel in
central Cordoba, Spain, with the intention of converting these into a 220-bed
hostel and 100-bed hostel respectively, as well as the signing of its first
management contract for a 120-bed hostel on Spain's Costa Blanca.

https://www.safestay.com/ (https://www.safestay.com/)

 

*Source - Markets and Research, August 2022

 

Safestay's pan-European locations include:

 

·    Athens Monastiraki, Greece
(https://www.safestay.com/venue/safestay-athens-monastiraki/)

·    Barcelona Gothic, Spain
(https://www.safestay.com/venue/barcelona-gothic/)

·    Barcelona Passeig de Gracia, Spain
(https://www.safestay.com/venue/safestay-barcelona-passeig-de-gracia/)

·    Berlin Kurfurstendamm, Germany (hotel)
(https://www.safestay.com/venue/safestay-berlin-kurfurstendamm/)

·    Bratislava Presidential Palace, Slovakia
(https://www.safestay.com/venue/safestay-bratislava-presidential-palace/)

·    Brighton, UK (in development)

·    Brussels Grand Place, Belgium
(https://www.safestay.com/venue/safestay-brussels-grand-place/)

·    Glasgow Charing Cross, UK
(https://www.safestay.com/venue/safestay-glasgow-charing-cross/)

·    Edinburgh Cowgate, UK
(https://www.safestay.com/venue/safestay-edinburgh-cowgate/)

·    London Elephant & Castle, UK
(https://www.safestay.com/venue/safestay-london-elephant-castle/)

·    London Kensington Holland Park, UK
(https://www.safestay.com/venue/safestay-london-kensington-holland-park/)

·    Lisbon Bairro Alto, Portugal
(https://www.safestay.com/venue/safestay-lisbon-bairro-alto/)

·    Madrid Central, Spain
(https://www.safestay.com/venue/safestay-madrid-central/)

·    Pisa Centrale, Italy
(https://www.safestay.com/venue/safestay-pisa-centrale/)

·    Prague Charles Bridge, Czeck Republic
(https://www.safestay.com/venue/safestay-prague-charles-bridge/)

·    Warsaw Old Town, Poland
(https://www.safestay.com/venue/safestay-warsaw-old-town/)

·    York Micklegate, UK
(https://www.safestay.com/venue/safestay-york-micklegate/)

 

 

 

 

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