Safestay PLC New Hostel in Vienna (7815F)
October 31 2018 - 2:00AM
UK Regulatory
TIDMSSTY
RNS Number : 7815F
Safestay PLC
31 October 2018
31 October 2018
Safestay plc
("Safestay", the "Company" or the "Group")
Long term lease on Vienna City Centre Site
Safestay (AIM: SSTY), the owner and operator of an international
brand of contemporary hostels, is pleased to announce it has
successfully secured a long term 20 year lease, with an option to
extend for a further 10 years, at a well located site in the heart
of Vienna.
The property, currently operating as a 52 room hotel, is well
placed on Schönbrunner Strasse 41, with excellent transport links
and is just a 3 minute walk to the nearest U-Bahn station. The
Group intends to convert the property into a 234 bed Safestay
branded hostel. With the switch from hotel to hostel being
relatively straightforward, it is expected that the conversion will
be completed in 3 months and at a cost of less than EUR0.3m.
An historic tourist destination, Vienna represents a significant
step in Safestay's expansion across Europe's flagship locations,
with over 1.5 million overnight tourist stays recorded in Vienna in
June 2018 alone. This transaction gives Safestay a presence in 6 of
the 10 most popular European tourist destinations. It also further
positions the Group to benefit from the continued growth in the
European hostel market, which by 2020 is projected to grow by 7-8
per cent year on year, with a current value of $5.2 billion in bed
revenue.
Following this transaction the Group's portfolio of premium
hostels consists of:
-- 4 sites in the UK: York, Edinburgh and two in London
-- 9 sites in Europe: Brussels, Lisbon, Madrid, Paris, Prague, Vienna and three in Barcelona
-- 3,400 beds across all 13 hostels
Chairman of Safestay, Larry Lipman, said:
"Vienna has long been on our target list of cities given its
global appeal. The site is ideal for our purposes and will become
an attractive premium hostel in the heart of this famous city. We
are confident it will quickly be an earnings enhancing transaction
and as importantly be a significant and popular addition to our
expanding network."
To listen to Safestay COO, Nuno Sacramento, discuss the
expansion of the Safestay brand, the attractions of Vienna and the
ongoing rise in popularity of the modern hostel experience in
further detail, click here https://bit.ly/2ETeWxE
Enquiries
Safestay plc +44 (0) 20 8815 1600
Larry Lipman
Canaccord Genuity Limited
(Nominated Adviser and Broker) +44 (0) 20 7523 8000
Chris Connors
Martin Davison
Novella +44 (0) 20 3151 7008
Tim Robertson
Toby Andrews
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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