TIDMSSTY

RNS Number : 8206L

Safestay PLC

06 October 2016

6(th) October 2016

Safestay plc

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

New Planning Consent for Extension to Elephant & Castle Hostel

Safestay (AIM: SSTY), the owner and operator of a new brand of contemporary hostel, is pleased to announce that a significant new planning consent has been granted to extend Safestay London Elephant & Castle.

Southwark Council has granted Safestay full planning permission and listed building consent to develop an additional 80 beds over four floors and rework the lower ground floor food and beverage areas. The consents will provide for an additional 5,000 sq ft gross internal area and take the hostel's total bed count to 493.

Larry Lipman, Group Chairman, commented that "We are delighted to have the opportunity to drive further value into our Elephant & Castle hostel. The business was revalued in July 2016 seeing an uplift of GBP3.8m to GBP16m, reflecting the strength of the trading performance. Elephant & Castle was our first hostel, previously the site of the Labour Party headquarters. It is a great building in a strong location, which has proven very popular amongst our customers.

"The works, which will commence in 2017, will see accommodation added as a blend of private rooms and smaller en suite dormitories. It will allow the hostel to grow with strong margins generated from the increased capacity although there will be some disruption during the works, which will be timed to minimise the impact. We are also taking the opportunity to enhance the food and beverage space to further strengthen our non-accommodation revenues."

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Enquiries

 
 Safestay plc                       +44 (0) 20 8815 1600 
 Larry Lipman, Chairman 
 
 Canaccord Genuity Limited 
  (Nominated Adviser and Broker)    +44 (0) 20 7523 8000 
 Bruce Garrow 
 Chris Connors 
  Ben Griffiths 
 
 Novella 
 Tim Robertson                      +44 (0) 20 3151 7008 
 Toby Andrews

For more information visit: www.safestay.com

This information is provided by RNS

The company news service from the London Stock Exchange

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October 06, 2016 02:00 ET (06:00 GMT)

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