Safestay PLC Acquisition (0470H)
March 08 2018 - 2:00AM
UK Regulatory
TIDMSSTY
RNS Number : 0470H
Safestay PLC
08 March 2018
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR").
08 March 2018
Safestay plc
("Safestay", the "Company" or the "Group")
Acquisition of 3(rd) Hostel in Barcelona
Safestay (AIM: SSTY), the owner and operator of a new brand of
contemporary hostel, is pleased to announce that it has acquired a
third hostel in Barcelona for EUR3.0 million from Equity Point
Hostels ("Equity Point").
Known as Barcelona Centric, the hostel is situated in one of
Barcelona's most desirable avenues, Passeig de Gràcia. Offering 340
beds it has been consistently popular with visitors to the City and
was a flagship hostel of Equity Point. The acquisition will mean
the Group now has three hostels in Barcelona, two centrally located
and one on the beach, together offering 594 beds in easily one of
the most visited cities in Europe.
The property is held on a lease for a total of 15 years, 3 years
of which are fixed, followed by tenant only options to extend. The
consideration for the acquisition is EUR3.0 million which will be
satisfied from the Group's existing cash resources with an initial
payment of EUR0.7 million and then four payments of EUR0.575
million spread over the next four years.
For the financial year ended 31 December 2017, the hostel
generated sales of EUR2.4 million and EBITDA of EUR574k.
As a result, the Group's hostel portfolio now consists of 10
operating hostels, plus a development site in Paris and 34
apartments in Madrid under development. With the addition of
Barcelona Centric the number of beds across the portfolio has
increased to 2,646, excluding the 34 apartments in Madrid currently
under development and a further 330 additional beds which will
become available when the Paris and the Elephant and Castle
extensions open.
Larry Lipman, Chairman of Safestay, said:
"We know the Barcelona market well and we know there is high
demand for our premium hostel offer. We are therefore fully
confident of integrating this new site into the Group and using it
to expand our presence in what is a very popular City. Our European
acquisitions last year in this City and in Prague, Lisbon and
Madrid are all performing well.
The global hostel market is booming and we are benefitting from
this increase in awareness and popularity. Importantly, we have in
place the operational strength to support a much larger business
across multiple geographies and we look forward to making further
significant progress in 2018."
- ENDS -
Enquiries
+44 (0) 20 8815
Safestay plc 1600
Larry Lipman, Chairman
Sharon Segal, Finance Director
Canaccord Genuity Limited +44 (0) 20 7523
(Nominated Adviser and Broker) 8000
Chris Connors
Martin Davison
Michael Reynolds
Novella
+44 (0) 20 3151
Tim Robertson 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
END
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