RCS - Safestay PLC - Initial franchise agreement signed

SafestayAnnouncement

18/08/2025 07:00

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RNS Number : 6079V  Safestay PLC  18 August 2025

Safestay plc

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

 

Initial franchise agreement signed for two properties in Austrian alpine
resort

 

Franchising model offers capital-light expansion opportunities aligned to
Safestay's significant expansion plans

 

Safestay (AIM: SSTY), one of Europe's largest hostel groups, is pleased to
announce the signing of its first franchise agreement as the Group continues
to execute against its growth strategy which includes delivering capital-light
expansion opportunities.

 

The Company has entered into a franchise agreement with hostel owner and
operator, Sycomore Entwicklungen GmbH ("Sycomore"), to operate under
Safestay's brand name and systems, with effect from 1 September 2025, with an
initial term of five years and an option to extend for a further five years
(the "Agreement"). The Agreement covers two hostels in the sought-after alpine
resort of Kitzbühel, Austria, a year-round destination with world-class ski
facilities and summer attractions, making it an ideal location for Safestay to
broaden its reach beyond its core market of city centres in major European
capitals.

 

The Agreement will see the two properties - currently operated as the Roomie
Alps Design Hostel Kitzbühel and the Guesthouse Johanna hotel (together, the
"Properties") - rebranded and operated as Safestay Kitzbühel Centre and
Safestay Kitzbühel Alpine, respectively. The Properties combined offer 70
beds in Kitzbühel and are a five-minute walk from the main ski lifts with
easy access to local restaurants, bars and transport links. Under the terms of
the Agreement, Safestay is entitled to receive guaranteed fixed annual
payments plus additional performance-based fees, including commission for
direct bookings via the Safestay platform. The rebranding process will be
executed by Sycomore under the existing Safestay brand-standards.

 

The franchising model offers reduced capital requirements while allowing
Safestay to leverage its established international brand, marketing reach and
operational capabilities to drive incremental growth. Both Safestay Kitzbühel
Centre and Safestay Kitzbühel Alpine will be integrated into Safestay's sales
and marketing platform, benefitting from Safestay's operational expertise and
proprietary IT infrastructure. Sycomore will also have access to dedicated
support services, such as HR, recruitment, and yield management advice through
Safestay's Commercial Hub operation in Warsaw. This integration is expected to
drive a greater proportion of direct bookings to the Properties via
safestay.com
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/___.YXAxZTpzaG9yZWNhcDphOm86Yjg0MmRhZWE2NmY2MTEzZjNjNTBiNWY0MDk4ZDhjNDA6Nzo5YTBkOjFhOTQ4NzcxOTJkNTI0MWEyOTYwNTQyYmVhMGE2ODBlN2ZjYjFmMjY2ODU5NTM0ODc5YzBmY2I2YWVmZTJlYzU6cDpGOk4)
, lowering reliance on online travel agents.

 

Larry Lipman, Chairman of Safestay, said:

 

"Our first franchise agreement is an exciting opportunity for Safestay as we
continue to execute against our ambitions to double the size of our portfolio
over the medium term.

 

Supplementing our core freehold and leasehold expansion strategy with
capital-light, flexible growth opportunities, such as franchising, offers
exciting new routes to market that are financially attractive and leverage our
strengths as an established, international brand in the fast-growing but
highly fragmented global hostel market. Whilst we continue to see significant
white space for Safestay in a great number of European city centres, we are
excited to take Safestay to a much sought-after alpine resort and introduce
the brand to different travellers and new customers.

 

These two sites have great potential and will benefit from our leading brand
and well-invested infrastructure. We look forward to demonstrating the
attractiveness of the franchise model and exploring further similar
opportunities for growth."

 

Nikolaus Kramhaller, Managing Director of Sycomore Entwicklungen GmbH, said:

 

"We are excited to partner with Safestay - one of Europe's leading and most
highly respected hostel operators. Our properties are in excellent locations
and will benefit from Safestay's brand and operational expertise as we elevate
our offering at Safestay Kitzbühel Centre and Safestay Kitzbühel Alpine.

 

This opportunity will allow us to utilise Safestay's established
infrastructure and proven systems, while also providing Safestay with an
excellent opportunity to expand. It is a strategic win-win that will enhance
our guest experience while strengthening Safestay's presence in one of
Europe's most desirable mountain destinations."

 

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/India Laidlaw           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)

 

About Safestay PLC

Safestay
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6Nzo3ZDIzOjBjZWU2ZmU2MGJhZmIxYjdkODY3ZmE0MTRhMzA1MmFhY2M4MzYxYjIzY2FjNWZlMmNhZDJhZTZjZjlmZDg3NWM6cDpUOk4)
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 20 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.

 

In 2024, the Group delivered a 10% increase in Total Bed Nights to 931,688,
37% of which were booked through direct and non-commissionable channels.

 

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.

 

https://www.safestay.com/
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6Nzo3ZDIzOjBjZWU2ZmU2MGJhZmIxYjdkODY3ZmE0MTRhMzA1MmFhY2M4MzYxYjIzY2FjNWZlMmNhZDJhZTZjZjlmZDg3NWM6cDpUOk4)

 

*Source - Markets and Research, August 2022

 

Safestay's pan-European locations include:

 

·    Athens Monastiraki, Greece
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·    Barcelona Gothic, Spain
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/barcelona-gothic/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6Nzo3MTY3OmQ5MzNiMzZhZWZkNjY0OTYyZTdhMjc0OWFiOWJmNzBkZDI5ZDVjY2MwNDEzMTQ1ZjZmZWM0MWY3ZDZkMmIzMWQ6cDpUOk4)

·    Barcelona Passeig de Gracia, Spain
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-barcelona-passeig-de-gracia/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6Nzo3YzNmOmRlZWRlZDUyZjU5NTMwNjQwYTRmNDA1MGEwY2M4YzRiMThjNWVjYmQzMWRiMWU5NTlmMWMwNzMwOGVhMGJkN2E6cDpUOk4)

·    Berlin Kurfurstendamm, Germany (hotel)
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-berlin-kurfurstendamm/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6NzpmMTZjOjE2YTU1NDc0MjdkMDAwYzg1NDljZTQyOTljODc5ZTExNDY0OTk3NWUwOWI3OWMyOTdkMGQ3NWZlMmM2NzE1MzI6cDpUOk4)

·    Bratislava Presidential Palace, Slovakia
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-bratislava-presidential-palace/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6NzpkNzI2OmM3NjdlMGQyYzg4MzYwYmQ4NzBjN2VmYTA2OGQ5NWVmY2QwYzI2YTEwYjk4MWE0NzkxNjUzZmIwM2FmNjg1M2U6cDpUOk4)

·    Brighton, UK (in development)

·    Brussels Grand Place, Belgium
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-brussels-grand-place/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6NzozNWU2OmVkOWE2MmI0NzZhZDgyYTk2ZTE1MzI3MWVmZTM0NDE4N2MxY2NmZDhmNzIwZDM5ZjRhZGQxYzNiM2YyMWViNGU6cDpUOk4)

·    Budapest, Hungary (in development)

·    Calpe Seafront, Spain (in development)
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-calpe-seafront-costa-blanca/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6NzpkZGY0Ojk5YmIzYjA5NjhhNDc3MDAzYjkxOTNmNWZjN2UxOTc3NmQ0ZGZjNDNlZWRmOGEzN2M3YzdmZDA3M2Y0OGNmNmQ6cDpUOk4)

·    Córdoba Mezquita Catedral, Spain
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-cordoba-mezquita-catedral/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6NzplNzk1Ojc0NWRhZTg1YWFjZjg1OGJlZTU1MzYyNGY5ZWM5NTM0NmFlYmIwZGJkZjg4MTZjNThhMTQyOTI5Nzg3ODY2Y2Y6cDpUOk4)

·    Glasgow Charing Cross, UK
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-glasgow-charing-cross/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6NzowMGIzOmQzODViNzU5YWNiM2FiODliODZiYTY4YmYxYmNiMDQ3MDY4NjE3MTQ2YjQ2MmUzNGVmMjI3NTk4OGMwMDUzMTY6cDpUOk4)

·    Edinburgh Cowgate, UK
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-edinburgh-cowgate/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6NzoyNTZmOmU3YjcyNWEwZjQ2NzBkMDg0YzBlN2NkZmVjNTk3MDg3OTRiYWY1YjgxNGI3OGY0YTNkOTJkZDdiNWY1MTEzMzg6cDpUOk4)

·    London Elephant & Castle, UK
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-london-elephant-castle/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6Nzo0NmNhOjdlNjM3ZDhhN2NlNTBjMmVmYTMyMjQwZjhmMzBiYzQxYzliNWJmMDg5MGI2ZDFkMTQ1ZDI1M2ExNWM4NGE3NjA6cDpUOk4)

·    London Kensington Holland Park, UK
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-london-kensington-holland-park/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6NzpmNmMzOmNiOWYxYjI1ZTIxZWZmM2E4NWQxNzk3NGFiNTIyODY3MTY3MWQ3MTJiZTg5MTM1YjJlMjNlNGNjOGVmNzZjOGM6cDpUOk4)

·    Lisbon Bairro Alto, Portugal
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-lisbon-bairro-alto/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6Nzo4NGMyOjM3MzVkMTkyM2FhZTI0N2JjNWFiZWEwYzQzNTMzNjUxYjUwNjQ2YzM3ZjZmYzBhMGRlNjFhYzkxMTRlMDRlMzM6cDpUOk4)

·    Madrid Central, Spain
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-madrid-central/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6NzoxYmRlOmRmYTExODMyZTEzMDMyZDUzY2YyZTRiOWFmZmNlMzVmYzcwMGQxMzk2YjA5MTllYWE1N2IwMWNiMzc0OTBjOTI6cDpUOk4)

·    Naples, Italy (in development)

·    Pisa Centrale, Italy
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-pisa-centrale/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6NzozOTMwOmQxZDIyMjUwNmIzZDA2Y2YyZjNjY2Q1Mzk0M2I0YjczNzczNTMwNjBiNjNhZTI4NGE4NmQyZDlkMjY5NjNkNzM6cDpUOk4)

·    Prague Charles Bridge, Czeck Republic
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-prague-charles-bridge/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6NzoxNmJjOmRlMzAzNTEyOWIxN2MzNTUwZmVmNDE0ZjBjZTU4Y2EyNGE0ZjlmZTNhZDU0OTI0MDY2MjQ5YTQwZGZlYTBhNzA6cDpUOk4)

·    Warsaw Old Town, Poland
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-warsaw-old-town/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6NzpkZTdmOmMwYmNlZGRmODc3Y2UwYzkzMDUwY2Y1YmJhZjJmNDZmMjA3YWI1NjY1OTRmMzdiMWY4ZTJmYjkzYTNmZGIwMTU6cDpUOk4)

·    York Micklegate, UK
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-york-micklegate/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6NzphZTcwOjY2NmE0MzFiZjhlNDk1MTZmOWY2MjhjNzYyZTkzZjI4MjQ4ZmVjODQzYWVkN2VkNjczZThlNTMyOTNjZjg2ZTA6cDpUOk4)

 

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