Safestay PLC Disposal (7794Q)
March 02 2021 - 1:00AM
UK Regulatory
TIDMSSTY
RNS Number : 7794Q
Safestay PLC
02 March 2021
2 March 2021
Safestay plc
("Safestay", the "Company" or the "Group")
Disposal
Safestay (AIM: SSTY), the owner and operator of an international
brand of contemporary hostels, is pleased to announce the agreed
sale to Beds and Foods Barcelona s.l.u, of the smallest of its
three hostels in Barcelona, called Barcelona Sea, a leasehold site
with 96 beds, for a total consideration of EUR900,000, which is
also the book value of the hostel in the Group balance sheet. The
annual EBITDA of the hostel pre-COVID 19 was EUR70,000.
The sale proceeds will be used to repay the majority of the
final element of the acquisition consideration due to Equity Point
Holding Empresarial totalling EUR1.18m, for the purchase in 2018 of
the Barcelona hostel located in the avenue of Passeig de Gràcia, a
much larger hostel offering 351 beds.
While Safestay's 17 hostels continue to be temporarily closed,
since the timetable for coming out of lockdown announced by the UK
Government, the Company has been able to begin planning for an
orderly reopening of the portfolio, in time for the summer season.
With the additional expectation that European governments will
start to announce similar plans for coming out of lockdown.
Larry Lipman, Chairman of Safestay, said:
"The sale of Barcelona Sea fits with our strategy of
rationalisation of the portfolio as the business grows. It is
particularly pleasing to conclude the sale during these difficult
times. As we emerge from the COVID-19 lockdown, we shall continue
to seek value added opportunities, whether through further
disposals or acquisitions on the right terms."
Enquiries:
Safestay plc Tel: +44 (0) 20 8815 1600
Larry Lipman
Liberum (Nomad & Joint Broker) Tel: +44 (0) 20 3100 2000
Andrew Godber / Edward Thomas / Miquela Bezuidenhoudt
Novella Tel: +44 (0) 20 3151 7008
Tim Robertson / Fergus Young
About Safestay
Safestay (AIM: SSTY) is the owner and operator of an
international brand of contemporary hostels.
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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