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(SSTY) Safestay Share Chat

Discussion in 'General Share Chat (SSTY)' started by Groucho, Feb 28, 2019.

  1. Groucho

    Groucho Member

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    05 February 2019


    Safestay plc

    ("Safestay" or the "Company")


    FY18 Trading Statement


    Poised for European roll-out


    Safestay plc (AIM: SSTY), the owner and operator of an international brand of contemporary hostels, is pleased to provide the following trading update for the 12 months to 31 December 2018.

    Key highlights in 2018

    · Positive trading performance

    · 39% increase in total revenues to £14.6 million (2017: £10.5 million)

    · Growth in Occupancy to 75.6% (2017: 72.8%)

    · Expect to deliver at least £3.4 million in EBITDA (2017: £3.2 million)

    · Added new hostel sites in Barcelona, Brussels and Vienna

    · Successful £10.36 million capital raise in December 2018 to fund future expansion

    · Poised for European roll-out with 15 European cities identified

    At an annual growth rate of 5%*, the contemporary hostel market is the fastest growing segment of the accommodation sector within which Safestay is already one of the leading operators in Europe with 2,792 beds. Demand for the hostel experience from the digital generation, in particular, remains strong across the UK and the continent.

    * A report from Phocuswright 2016

    The successful capital raise in December 2018 which generated £10.36 million of new funds, reflects the strength of the performance to date and provides the financial platform to complete the next stage of the Group's expansion. 15 European cities have been identified as suited to the Safestay brand and there is a strong pipeline of potential sites located in these cities in various stages of negotiations.

    In 2018, the Company added three new city centre sites. In H1 the Company acquired the 351 bed Barcelona Passeig de Gracia hostel which has performed strongly from the outset. In H2 the Company secured 2 long term leases in Vienna and Brussels.

    In addition, the Company is pleased to announce that the popular Elephant & Castle Safestay hostel located in the Labour Party's ex-headquarters has completed its 73 bed extension and now offers 486 beds per night. In total, the Group now consists of:

    · 4 sites in the UK: York, Edinburgh and two in London

    · 9 sites in Europe: Brussels, Lisbon, Madrid, Paris, Prague, Vienna and three in Barcelona

    · 2,792 beds across all 12 hostels and 234 under construction


    Looking ahead, Larry Lipman, Chairman of Safestay, said:

    "The focus is to grow the brand and the Company has the capital to support an increase from the 13 sites today to over 20, at which point the business will become self-funding and increasingly gain from economies of scale and brand growth."

    The Company will announce Final Results for the 12 months to 31 December 2018 in April 2018.
     
  2. Groucho

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  3. Groucho

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  4. Groucho

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  5. Groucho

    Groucho Member

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    10 April 2019


    Safestay plc

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

    Final Results for the year Ended 31 December 2018

    Safestay (AIM: SSTY), the owner and operator of a new brand of contemporary hostel,

    2018 Financial highlights

    · 39% increase in total revenues to £14.6 million (2017: £10.5 million)

    · 8% increase in like for like sales in mainland Europe with Group like for like sales up 1% to £10.6 million (2017: £10.5 million) as UK is down by 1% due to the disruption from adding 73 beds in Elephant & Castle

    · 43% or £6.2 million of net revenue now coming from mainland Europe versus 19% in 2017

    · Occupancy grew to 76% (2017: 73%)

    · Adjusted EBITDA of £3.4m (2017: £3.2 million)

    · Loss before tax reduced to £0.60 million (2017: £0.86 million)

    · Loss per share 2.56p (2017: 2.55p)

    · Completed successful £10.36 million capital raise in December 2018 to fund future expansion



    2018 Operational highlights

    · Added 575 beds with 3 new properties in the key gateway cities of Barcelona, Brussels and Vienna

    · Significant improvements in operating margins led to profit before tax from UK hostels increasing by 14% to £1.76 million(2017: £1.55 million)

    · Hostel EBITDAR margins have increased by 7% to 48% (2017 44.8%)

    · Guest recommendation rate increased to 81% (2017 80%)

    · Enhanced website and booking engine implemented in Q4 2018

    · Adopted common property management system (Cloudbeds) now operating in all hostels

    · Madrid rooftop bar open since July 2018


    Post year end

    · Completed 73-bed extension to Elephant & Castle on 20 January 2019, triggering a £1.18 million final payment to Safestay under the re-financing transaction in February



    Larry Lipman commenting on the results said:

    "2018 was a positive year for the business and I am confident that 2019 will deliver continued growth. The portfolio is maturing and shows the benefits of the Group gaining from economies of scale, geographic spread and group wide automation. This, together with continuing global demand for the modern hostel experience means we are well placed to sell an increasing number of bed nights in 2019 and add further destination cities to our portfolio."

    Safestay PLC - Final Results @SafestayHQ https://www.voxmarkets.co.uk/rns/announcement/0b6c067e-2a35-4eb7-b040-ab21f476bd01
     
  6. Groucho

    Groucho Member

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    13 June 2019

    Safestay plc

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

    Acquires Italian Hostel in Pisa


    Safestay (AIM: SSTY), the owner and operator of an international brand of contemporary hostels, is pleased to announce that it has acquired the freehold of 'Hostel Pisa' for €3.25 million.

    The acquisition of the 161 bed Hostel Pisa is part of the Group's strategy to establish a pan-European network of premium hostels, located in popular tourist cities. The addition of Hostel Pisa takes the portfolio to fourteen hostels and with the recent fund raising and pipeline of potential sites, the Company is well placed to reach its shorter-term target of owning and operating 20 hostels.

    A very popular destination to visit in Italy's famous region of Tuscany, Pisa attracts over one million visitors each year, all keen to see its famous architecture from the Cathedral of Santa Maria Assunta to the Leaning Tower of Pisa.

    Hostel Pisa is located in the city centre, around the corner from Pisa train station and a 15 minute walk from the airport. Established in 2013, Hostel Pisa is a well maintained successful business with good quality bedrooms offering a contemporary hostel experience which fits neatly within the Safestay portfolio. Serving a true Italian culinary experience to guests sitting in a grape filled garden, it is a popular choice in this sought after tourist city.

    The property is freehold and in the 12 months to 31 December 2018 generated revenues of €0.8 million and EBITDA of €0.3 million. The total consideration of €3.25 million will be satisfied in cash, from the Group's existing cash resources. Given the good condition of the building and facilities, the only investment required will be to re-brand the building to become a Safestay Hostel at an approximate cost of €50,000.

    The Group's portfolio now consists of:

    · 4 sites in the UK: York, Edinburgh and two in London

    · 10 sites in Europe: Brussels, Lisbon, Madrid, Paris (under construction), Pisa, Prague, Vienna and three in Barcelona

    · 3,297 beds across all 14 hostels



    Larry Lipman, Chairman of Safestay, said:

    "It is very pleasing to be announcing the completion of this acquisition. Hostel Pisa is an excellent addition and a natural fit within our portfolio. Currently it operates independently, and we are confident that within the Safestay portfolio it has the potential to excel, taking advantage of our brand, purchasing power and ability to promote Pisa to guests staying in any of our other hostels.

    The Group as a whole is trading well and in line with market expectations. Demand has been strong overall and bookings for the summer look good."
     
  7. Groucho

    Groucho Member

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    18 September 2019

    Safestay plc

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

    Acquisition of Glasgow Hotel


    Safestay (AIM: SSTY), the owner and operator of an international brand of contemporary hostels, is pleased to announce that it has agreed to acquire the freehold of its fifteenth hostel, currently operating as 'Best Western Glasgow City Hotel', for £3.15 million. Completion of the acquisition is expected to take place on 21 October 2019.

    The acquisition of the 52-bedroom hotel is part of the Group's strategy to create a pan-European network of premium hostels in leading cities. Located on Elmbank Street in the heart of the City, the hotel is a short walk from Charing Cross railway station providing fast transport links to Edinburgh and other regions.

    Safestay already operates a successful site in Edinburgh and therefore the acquisition of Safestay Glasgow is a natural extension enabling the Group to market both cities. As with the acquisition of other hotels by Safestay, the Company intends to convert this site into a hostel and outline planning permission already exists for conversion into a 200 bed hostel.

    Glasgow, the largest city in Scotland, was the fourth most visited UK city from overseas outside London in 2018, globally renowned for its gothic style architecture such as the famous Glasgow Cathedral.

    The property is freehold and in the 12 months to 31 January 2019 generated revenues of £0.82 million. The total consideration of £3.15 million will be satisfied in cash from the Group's existing cash resources.

    Following this acquisition the Group's portfolio now consists of:

    · 5 sites in the UK: Glasgow, Edinburgh, York and two in London

    · 10 sites in Europe: Brussels, Lisbon, Madrid, Paris (under construction), Pisa, Prague, Vienna and three in Barcelona

    · Approximately 3,500 beds across all 15 hostels

    Larry Lipman, Chairman of Safestay, said:

    "Given the success of our 615 bed Edinburgh hostel which we acquired in 2015 and now considered to be a flagship site within our portfolio, we have been looking for sometime to find the right site in Glasgow. We are therefore very pleased to have secured this excellent building which is ideally suited to being a hostel, providing an excellent base to explore Glasgow from. We very much look forward to Safestay Glasgow becoming part of the portfolio."
     
  8. Groucho

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    24 September 2019

    Safestay plc

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

    Joint Venture Partnership to develop 660 bed Venice Hostel


    Safestay (AIM: SSTY), the owner and operator of an international brand of contemporary hostels, is pleased to announce that it has entered into a joint venture partnership with EOS Sicav plc to develop a 660 bed hostel in Venice. Safestay will acquire 50% of the freehold site for €2.1 million and share the development costs of building the hostel on a 50:50 basis.

    The site covers 6,000 sqm and is located on Via Fratelli Bandiera, a very short walk from the main railway terminal, Mestre Station. Construction is scheduled to begin in 2020 once final licensing is confirmed. Safestay's share of the development costs are expected to be approximately €5.0 million and once completed, Safestay will lease the hostel from the joint venture partnership and be the sole operator.

    Venice is undoubtedly one of Europe's most iconic cities attracting over 14 million visitors throughout the year and thereby providing year round revenues from tourism.

    Given the popularity of the city, Venice is still relatively under served in terms of number of hostel beds. As a consequence, to have secured a site to develop a 660 bed hostel in such a good market is a very strong addition to the Safestay portfolio and once completed it will be a significant contributor to the Group's future profitability.

    The property is freehold and the total consideration of €2.1 million for 50% of the site will be satisfied from the Group's existing cash resources.

    Following this acquisition, the Group's portfolio consists of:

    · 5 sites in the UK: Glasgow, Edinburgh, York and two in London

    · 11 sites in Europe: Brussels, Lisbon, Madrid, Paris (under construction), Pisa, Prague, Vienna, Venice and three in Barcelona

    · Approximately 4,200 beds across all 16 hostels (once fully developed)

    Larry Lipman, Chairman of Safestay, said:

    "Acquiring a site for a substantial hostel in Venice is a great opportunity for Safestay. We have been working closely with EOS Sicav plc for some time to achieve this, as the potential is clear and the number of similar opportunities are few.

    This is also our second site in Italy following the acquisition of Safestay Pisa earlier this year. Italy is a natural market for us and we are continuing to look for similar opportunities in the other popular Italian cities."
     
  9. Groucho

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    25 September 2019

    Safestay plc

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



    Interim Results

    For the Six Months to 30 June 2019



    Safestay (AIM: SSTY), the owner and operator of an international brand of contemporary hostels, announces its unaudited interim results for the six months ended 30 June 2019



    Trading Highlights

    · Safestay now has 16 hostels with approximately 4,000 beds (including hostels in Glasgow, Paris and Venice currently under development) across 9 European and 4 UK cities

    · Total revenues increased by 24% to £8.1 million (2018: £6.5 million) with like for like sales up 4%

    · Average Bed Rate increased by 6%* to £19.5 (2018: £18.4)

    · Adjusted EBITDA (pre IFRS 16 adjustment) is £1.4 million (2018: £1.3 million)

    · As at 30 June 2019 the Company had £8.3 million cash in the bank

    · The freehold 161 bed Pisa hostel site acquired for £3.0 million in June 2019 has traded strongly

    · F&B sales increased by 31%

    · New restaurant in Barcelona Passeig de Gracia hostel and completion of the 73-bed extension in Elephant & Castle hostel with a full renovation of the bar area


    *Excludes Vienna and Brussels which are currently operating as Hotels and as a result have higher bed rates


    H2 2019 and beyond

    · Positive summer trading positions the Company well and the Board expects revenues for the current year to exceed £17.0 million and adjusted EBITDA (pre IFRS 16 adjustment) to be in the region of £3.8 million

    · 18 September, announced the acquisition of a freehold site in Glasgow for £3.15 million currently operating as a 52 bed hotel with the potential to be converted into a 200 bed Safestay hostel following the completion of the purchase in October 2019

    · 23 September, Elephant & Castle hostel was revalued following the 73 bed extension at £26.8 million, an increase of £10.8 million over the last valuation in 2017, which equates to an NAV increase of 16.7p per share

    · 24 September, announced the execution of an agreement to acquire a 50 per cent stake in a site in Venice which will be converted into a 660 bed hostel, our biggest hostel so far, and operated by Safestay upon completion in 2021

    · Good prospects for further complementary acquisitions to be funded from existing resources


    Larry Lipman, Chairman of Safestay, said:

    "2019 has to date been good for trading seen in the 24% increase in sales for H1 and for expansion with the acquisition of three new hostels which once completed will add 1,000 beds increasing the portfolio by nearly one third. Alongside this, our platform is now established, and we can therefore add to our portfolio without materially adding to our structure or central costs so that our economies of scale will increasingly come into play as we move to our 2020 target of operating 20 hostels.

    From a trading perspective, we have yet to see the full benefit from our acquisitions in Vienna, Brussels, Pisa and more recently Glasgow together with the medium-term potential of Paris and Venice. We have also shown the underlying value within our property portfolio with the revaluation of Elephant & Castle to £26.8 million, an increase of 67% since 2017.

    Safestay is therefore in an enviable position to continue its positive growth trajectory, building a portfolio of well positioned hostels under a premium, contemporary hostel brand"

    Safestay PLC - Half-year Report @SafestayHQ https://www.voxmarkets.co.uk/rns/announcement/d74d2131-6452-4b20-a3f4-19bed5776248
     
  10. Groucho

    Groucho Member

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  11. Groucho

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    3 February 2020

    Safestay plc

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

    FY19 Trading Statement


    Safestay (AIM: SSTY), the owner and operator of an international brand of contemporary hostels, is pleased to announce a successful trading period for the 12 months to 31 December 2019, recording significant increases in revenues, occupancy and EBITDA.

    FY19 Highlights

    · 25% growth in total revenues to £18.3 million (2018: £14.6 million) with like for like revenues up 7%

    · 11% increase in adjusted EBITDA* to £3.8 million (2018: £3.4 million)

    · 77.3% occupancy achieved over the period, up from 75.6%, reflecting good demand

    · 5% increase in average bed rate to £21.3 (2018: £20.3)

    · 43% growth in F&B revenues now representing 14% of total revenues

    · Completed 6 transactions, adding 8 hostels increasing the portfolio to 21 sites and over 5,100 beds

    · Europe now represents 49% of sales (2018: 43%)

    * adjusted EBITDA excludes one-off, non-recurring expenditure which would otherwise distort the metric for comparison purposes

    Larry Lipman, Chairman of Safestay, said, "In 2019 we near doubled the size of the Safestay network. In doing so, the Safestay brand has become Europe's leading premium hostel network totalling 21 sites, all in sought-after central locations in the UK and Europe's best known cities. The brand is now well established and positioned to sell over a million bed nights in 2020 in unique hostels ranging from Edinburgh to Athens.

    Trading in 2019 was good, all key indicators were strongly positive, in particular the organic growth performance, and critically we have yet to really benefit from the recent acquisitions agreed towards the end of the year. Safestay is therefore well placed to grow substantially in 2020 and take advantage of the increasing popularity of the modern hostel sector."

    Trading performance

    The business performed well in 2019, achieving 25% growth in sales. Demand has been consistent across the business with occupancy now averaging 77.3%, helped by a 50% increase in direct web bookings driven by the Company's booking engine and website which were refreshed in early 2019.

    F&B, previously identified as a growth opportunity, was up 43% in 2019 and supported by the refurbishment of 3 restaurants in Barcelona, Elephant & Castle and Edinburgh. These enhancements were part of the £1.8 million refurbishment and renovations programme across 2019 and 2020. Re-investment is core to maintaining the premium status of Safestay amongst the hostel market and the ongoing high levels of guest satisfaction.

    The integration of the new hostels acquired in 2019 is proceeding well with the investment made over the last three years in centralised IT and booking systems and the integration experience the Group has gained, ensuring that the incoming sites can be integrated efficiently, and immediately benefit from the Group's economies of scale.

    In January 2020, a new 5 year £23 million loan facility was agreed with HSBC. The new facility is on the same terms and replaces the £18 million 5 year loan facility agreed in 2017 also with HSBC and with an interest rate of 2.45% + LIBOR, providing the Company with additional headroom to support its commercial objectives.

    Further to the announcement made on 18 December 2019, the acquisition of the Bratislava and Warsaw Hostels from Dreamgroup Management E.C.P. Ltd for a total consideration of €2.7 million has been completed. The completion of the acquisition of the third hostel of the Dream portfolio, which is located in Prague, will take place in the next weeks.

    Outlook

    The financial performance and the investment made in 2019 has created real momentum going into 2020. While still very early in the year, performance in the first month of 2020 and forward bookings for Q1 are very encouraging, a positive signal for the coming year, which will also benefit from the acquisitions made last year.

    Current Network

    F82871AC-890F-4BC2-A04A-821C7C43BB64.jpeg
     
  12. Groucho

    Groucho Member

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    79F9E28F-B549-48EC-A6A4-3A68B59008AA.jpeg
    City AM 05/03/2020
     
  13. Groucho

    Groucho Member

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    10 March 2020

    Safestay plc

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

    Trading Update


    Safestay (AIM: SSTY), the owner and operator of an international brand of contemporary hostels, announces that the spread of the COVID-19 virus is having an impact on bookings across the hostel network.

    We have experienced a material reduction in new bookings over the last week against our expectations and there have been a growing number of group bookings from schools and colleges which have been cancelled or postponed. It is too early to say what the full impact from COVID-19 might be in the current financial year, as it is not known how long the virus will continue to impact travel and spending patterns in Europe and the UK.

    As announced in a trading update on 3 February 2020, the Company completed a successful year in 2019 and entered 2020 in a strong financial position. The Board is confident that the business is well placed to weather the current challenges and return to growth as and when the travel market normalises.

    In the meantime, the Company is reducing flexible costs where possible to offset the dip in bookings whilst strictly adhering to all health advice in order to help protect all of our staff and guests.
     

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