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SafestayAnnouncement

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RNS Number : 7816U  Safestay PLC  02 March 2026

Safestay plc

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

 

Trading Update

 

Safestay (AIM: SSTY), one of Europe's largest hostel groups, announces a
trading update for the year ended 31 December 2025 (the "Period" or "FY25").
The figures in this announcement remain subject to audit.

 

In its trading update released on 12 November 2025, the Company stated that it
was experiencing significant pricing pressures across its European markets
which were impacting revenue. These pressures continued to the end of FY25
and, as a result, Group revenue(1) for the Period declined to approximately
£20.6 million (2024: £23.0 million). Adjusted EBITDA(2) decreased to
approximately £3.9 million (2024: £6.5 million) reflecting the revenue
performance as well as inflationary pressures, in particular, higher staff
costs across several of the Group's UK and European properties.

 

Total bed nights in the Period decreased by 6% to 877,674 (2024: 931,688), of
which 32% were booked through direct and non-commissionable channels (2024:
37%) and 16% were group bookings (2024: 16%). The occupancy rate was 70%
(2024: 75.2%). The Average Bed Rate ("ABR") decreased by 6% to £20.07 (2024:
£21.40) reflecting the highly competitive pricing environment. As a result,
total Revenue Per Available Bed ("RevPAB") decreased to £23.46 (2024:
£24.67). Forward bookings at 1 January 2026 were £3.1 million (1 January
2025: £4.7 million).

 

During the Period, the Group continued the strategic expansion of its hostel
portfolio, adding three new properties in popular European travel locations.
In June, the Group signed a 12-year lease agreement to operate a 300-bed
hostel in Naples. In August, the Group signed its first franchise agreement
for two hostels in Kitzbühel, Austria. Alongside these openings and aligned
with the Group's strategy to crystallise value for shareholders while
supporting sustainable long-term growth, Safestay sold and franchised its
Edinburgh freehold property and hostel for £5.4 million and sold and leased
back its Brighton freehold property for £3.1 million.

 

As a result, at the year end, the Group had 22 hostels in its portfolio,
including two in development and three operated on a franchise basis (2024: 19
hostels including three in development and zero operated on a franchise
basis).

 

Further to the freehold property sales described above, as well as the award
in June 2025 of a Covid-19 related business interruption insurance claim
totalling £1.4 million (net of associated professional fees), the Group's
cash at bank at 31 December 2025 was £2.7 million, a 93% increase
year-on-year (2024: £1.4 million), and, on the same date, net debt was
significantly reduced at £14.2 million (2024: £19.5 million).

Current Trading & Outlook:

 

Current occupancy levels are in line with the comparative period in Q1 2025,
but ABR in the year to date is approximately 20% ahead of the prior year
reflecting management's focus on increasing pricing. The Board expects RevPAB
to strengthen throughout 2026 which should have a positive impact on the
Group's EBITDA. Meanwhile, the Company's newly structured Group Booking
department has seen encouraging increases in group booking conversion, giving
the Board confidence that this customer segment will return to growth in 2026.

 

Cost pressures persist with several destinations imposing tourist levies on
travellers, alongside increased business rates in the UK and VAT changes in
Europe. Against this backdrop, Safestay is taking proactive actions to control
costs and selectively increase pricing to support improved profitability.

 

As previously announced, the Board continues to consider various strategic
options, including further disposals and/or the sale and leasebacks of certain
of the Company's properties. Further announcements will be made as and when
appropriate.

 

The Board remains positive about Safestay's long-term prospects as a proven
operator in the significant and fragmented European hostel market, with
several further expansion opportunities being appraised.

 

Larry Lipman, Chairman of Safestay, said:

"Despite what remained a challenging trading environment across the UK and
Europe, Safestay delivered important further strategic developments in 2025.
We continued to strategically expand the portfolio with three new hostels
added in Italy and in Austria. Alongside this, we strengthened our balance
sheet through the sale of two freehold sites in Edinburgh and Brighton, which
reflects the quality of the Group's pan-European portfolio.

 

"Looking ahead, our ambition remains to deliver sustainable growth and
crystallise value for shareholders, whilst over the medium-term growing the
portfolio selectively. With a leading brand in the European hostel market, as
well as well-invested systems and a strong pipeline of opportunities, we
remain confident in Safestay's ability to deliver sustainable expansion."

 

A copy of this announcement is available on the Company's
website, www.safestay.com (http://www.safestay.com/)

( )

(1)Including discontinued operations

(2)Adjusted EBITDA represents earnings before interest, tax, depreciation,
amortisation and one-off nonrecurring adjusting items

( )

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)

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 operational sites of 21 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, Austria and
Slovakia.

 

In 2025, the Group delivered 877,673 Total Bed Nights of which 32% 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 2025

 

Safestay's pan-European locations include:

 

·    Kitzbühel Alpine, Austria
(https://www.safestay.com/venue/safestay-kitzbuhel-alpine/)

·    (https://www.safestay.com/venue/safestay-kitzbuhel-alpine/)
Kitzbühel Centre, Austria
(https://www.safestay.com/venue/safestay-kitzbuhel-centre/)

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

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

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

·    Athens Monastiraki, Greece
(https://url.avanan.click/v2/r02/___https:/www.safestay.com/venue/safestay-athens-monastiraki/___.YXAxZTpzaG9yZWNhcDphOm86NTk5NzExNTk0Mzk0MDRhM2IyNWZjYTRiZjA4MmM3ZDk6NzplZDAyOmU0NjFiNjIyZGVjOWIxYWRhN2RiZjUyNDkxZDA4MDljYjdhNjU0MzkyNGY0YjY0OTcyMjc4MTg3ZTIxYWI0Zjg6cDpUOk4)

·    Naples, Italy
(https://www.safestay.com/venue/safestay-naples-materdei/)

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

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

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

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

·    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)

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

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

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

·    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)

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

·    Brighton, UK (in development)

 

 

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