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Safestay PLC said its revenue hit a record high in 2024 as occupancy increased and its portfolio expanded against cost-of-living pressures. The London-based hostel operator said in a trading update that 2024 revenue grew by 2.2% to £23.0 million from £22.5 million in the previous year. Adjusted earnings before interest, tax, depreciation and amortisation fell 4.4% in the same period to £6.5 million from £6.8 million in 2023. The company said its forward bookings on January 1 grew 27% to £4.7 million from £3.7 million at the start of 2024. Safestay said its occupancy rate strengthened to 75.2% from 71.4% in 2023, with total revenue available per bed slipping slightly by 2.0% to £18.56 from £18.93. The company said it was able to increase the sale of ancillary services, including food and beverage sales which rose 26% during the year. It hopes to increase the average bed rate using ‘innovative technology’, including a partnership with hospitality management platform Cloudbeds. The firm noted the expansion of its portfolio in 2024, with four new properties in Spain, the UK and Hungary. The company also returned the lease of its Vienna hotel in August, which was the only loss-making site in its portfolio, the company said. Looking ahead, the company said it sees ‘significant opportunities for growth’ and is confident of revenue and adjusted Ebitda growth, even against a challenging macroeconomic and competitive backdrop. It will continue to appraise expansion opportunities, including acquisitions and franchising partnerships, the company said. Chair Larry Lipman said: ‘2024 was a year of important strategic progress for Safestay as we further strengthened our position as one of Europe’s leading hostel operators... Whilst cost-of-living pressures continued to impact our customers and the pricing environment during the year, we were pleased to achieve year-on-year revenue growth supported by our ongoing focus on balancing increasing occupancy whilst also maintaining RevPAB. ‘We enter 2025 in a strong position as one of the leading international operators in a highly fragmented, sizeable and growing market.... We are very excited about the future for Safestay, which we are confident can create strong shareholder returns by delivering step-change growth in the medium-term.’ Safestay shares were down 1.5% to 23.16 pence in London on Monday afternoon. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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