REG - Safestay PLC - Trading Statement

SafestayAnnouncement

29/01/2024 07:00

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RNS Number : 1114B  Safestay PLC  29 January 2024

29 January 2024

 

Safestay plc

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

Trading Update

"Good Performance in 2023 - Comfortably in line with Market Expectations"

Safestay (AIM: SSTY), the owner and operator of an international brand of
contemporary hostels, is pleased to announce that trading for the 12 months to
31 December 2023, is expected to be comfortably in line with market
expectations*.

Highlights:

·    Sales expected to be £22.5 million (2022: £19.1 million)

·    Occupancy increased to 71.4% (2022: 63%)

·    Average bed rate maintained at £23.74 (2022: £23.63)

·    Completed the acquisition of Edinburgh Hostel in October for £4.3
million

·    Forward bookings, as at 1 January 2024, up twofold to £3.9 million
(2023: £1.9million)

·    Today the Group has separately announced a refinancing, extending its
debt facilities out to 2029

*Analyst coverage forecast revenue of £21.2 million and EBITDA of £6.7
million for the 12 months to 31 December 2023

The appeal of Safestay's portfolio of premium hostels has remained strong
amongst its core customer base of young travellers, families, and business
travellers resulting in 848,633 bed nights in 2023. The popularity of the
brand and the strength of the locations enabled the Group to achieve a good
performance over the course of the year.

In October, the Group completed the acquisition of a 225 bed hostel in the
centre of Edinburgh for £4.3 million. The building required some renovation
and investment which is underway and the site will be ready to open in advance
of the key summer months, as planned.

In 2023 occupancy increased to 71.4% (2022: 63%). This still remains below
historic levels providing further opportunity for improvement. One customer
segment that is recovering from the effects of the pandemic is large school
and college group bookings with forward bookings of £2.7 million, as at 1
January 2024, against £0.9 million in 2023. Overall, total forward bookings
are up twofold to £3.9 million.

Average bed rate remained at a good level of £23.74 (2022: £23.63). This
represents a step change in pricing since pre-pandemic levels. Maintaining
this level of bed rate combined with increasing occupancy is a key driver of
future growth.

Larry Lipman, Chairman of Safestay, said, "This performance demonstrates that
demand for our product has come back stronger than before the pandemic, and
represents an opportunity for Safestay to grow in this exciting market. Our
objective is to further build the business and we are very focused on doing so
through a careful mix of organic and acquisition led growth."

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 / Josh Borlant

Novella
 
            Tel: +44 (0) 20 3151 7008

Tim Robertson / Safia Colebrook

 

For more information visit our:

Website www.safestay.com (http://www.safestay.com)

Vox Markets page https://www.voxmarkets.co.uk/company/SSTY/news/
(https://www.voxmarkets.co.uk/company/SSTY/news/)

Instagram page www.instagram.com/safestayhostels/
(http://www.instagram.com/safestayhostels/)

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