REG - Safestay PLC - Acquisition

SafestayAnnouncement

01/05/2024 07:00

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RNS Number : 6691M  Safestay PLC  01 May 2024

1 May 2024

Safestay plc

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

Acquisition of Spanish Hotel in Cordoba

Building critical mass in Spain with the addition of a fifth property

 

Safestay (AIM: SSTY), the owner and operator of an international brand of
contemporary hostels, is pleased to announce the acquisition of the Hotel
Lineros from Mr. Antonio Medina Molera, Ms. Carmen Fernandez Gude and A.
MEDINA MOLERA, S.L.U. The  property has 30 freehold bedrooms and is situated
in the very centre of the ancient city of Cordoba, 60 miles north of Malaga.
Under the Safestay brand the site will be converted into a 100 bed hostel. The
cash consideration will be €2 million funded from the Group's existing cash
balance.

 

Hotel Lineros is a spectacular building and a natural fit with the Group's
portfolio of unique properties. Set over three floors, the property has been
constructed in the local Moorish style, with an attractive atrium courtyard,
large roof terrace, Moroccan marble sinks and richly decorated wood window
shutters. Generating an individual ambience that is expected to appeal
strongly to our target customers.

 

The hotel is ideally located just a short walk from Cordoba's famous ancient
mosque, La Mezquita, built in 784 A.D. and attracting 1.5 million visitors
each year. The historic city centre is also a major tourist destination and a
UNESCO world heritage site. The property is currently run as a hotel, and
whilst undergoing a conversion process,  is expected in the eight months to
31 December 2024 to generate revenues of approximately €230,000 and EBITDA
of €40,000.

 

On 1 May, the Company will begin a gradual conversion of the site into a
100-bed hostel, as well as a Safestay brand redecoration programme, with six
of the bedrooms converted to 4-6 bed dorms, and two bedrooms changed to family
rooms. Every room is already fitted with A/C and it is intended that the
hostel will continue to trade through this process fulfilling all pre-existing
bookings.

 

The acquisition is a part of building critical mass in key markets, including
Spain, and follows last month's announcement of a management contract to run
the resort-based 120 bed Calpe Seafront Hostel on Spain's Costa Blanca. Hotel
Lineros is the Group's fifth property in Spain alongside a hostel in Madrid
and two in Barcelona and is the first in the popular tourist region of
Andalusia.

 

It is expected that the new site will fit easily into the Safestay portfolio
and benefit from the well tested sales and yield management systems. It will
also benefit from the Group's economies of scale and overall marketing
programme which last year welcomed 848,633 guests across the portfolio.

 

Larry Lipman, Chairman of Safestay, said, "We are very excited with the
acquisition of this unique and beautiful property in the historic City of
Cordoba. It will open as Safestay Cordoba, paying homage to the UNESCO World
Heritage status the magnificent city centre has. Cordoba will be our 5th
property in Spain and 19th in our collection of upmarket hostels across
Europe. Our guests are looking for 'travel experiences' and I feel confident
that this unique property with its rooftop bar, central setting and Moorish
charm will perfectly suit our customer base of travellers, families and
schools."

 

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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