UK hostel operator Safestay exploring more property sales to boost liquidity, shares tumble
UK hostel operator Safestay exploring more property sales to boost liquidity, shares tumble Oct 26 (Reuters) - European hostel operator Safestay SSTY.L on Monday warned of liquidity pressure through the winter months as year-to-date trading fell below expectations and said it was exploring additional property sales and a financing review.
Shares of the UK-based company, which runs hostels in countries including Spain, Belgium, Greece and Italy, fell 29.4% in early trading.
Here are some details:
Safestay said that recent revenue management initiatives and property disposals only partially offset an expected slowdown in winter
The winter months, falling during the fourth and first quarters, are typically muted for the business, exacerbating its liquidity challenges
The hostel operator said it is evaluating options for its working capital requirements through the winter period and 2027 and for maintaining appropriate liquidity headroom
Investment into the refurbishment of its hostel portfolio ahead of the key summer period also remains in focus, Safestay said
The company is additionally undertaking a broader review of both head office and operational expenditure to cut costs further
(Reporting by Simone Lobo in Bengaluru; Editing by Sonia Cheema)
((Simone.Lobo@thomsonreuters.com, +919920570373))