11th Oct 2018 11:26
LONDON (Alliance News) - Safestay PLC on Thursday said it has acquired Hotel Opera located in Brussels for EUR1.6 million.
Of the EUR1.6 million, EUR1.4 million will be paid in cash with the remainder satisfied by the assumption of EUR200,000 of debt.
The hotel owner and operator intends to rebrand and convert Hotel Opera, an independent 50-bedroom property, into a 200 bed hostel by the end of January 2018. This is expected to cost approximately EUR200,000.
The property's leasehold has five years remaining, with an option to extend it to 2032. Safestay's portfolio now includes 12 hostels. These are located in Brussels, Barcelona, London, and others in Edinburgh, York, Lisbon, Madrid and Prague.
"Given that it is an operating hotel, conversion will be quick and many of the existing operating team will continue under the Safestay brand. We expect the transaction to be immediately earnings enhancing," said Safestay Chairman Larry Lipman.
Shares in Safestay were down 3.3% at 38.00 pence on Thursday.
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