18th Dec 2019 11:45
(Alliance News) - Hostel operator Safestay PLC said Wednesday it has acquired three hostels in central and eastern Europe for EUR3.7 million from Ukraine-based hotel operator Dreamgroup Management ECP Ltd.
The first hostel is in Warsaw, Poland, and offers 158 beds, and the second is a 124-bed hostel situated in Bratislava, Slovakia. The third hostel is in Prague in the Czech Republic, and offers 204 beds.
The EUR3.7 million will be in cash from Safestay's existing resources. The acquisition is expected to be completed in the first quarter of 2020, following which the three sites will be integrated with Cloudbeds, London-based Safestay's booking system.
"It is satisfying to meet our target of having at least 20 hostels one year ahead of schedule. However, the true value of the operating network we are establishing is in the customer response to the Safestay brand and the sought-after central locations in key cities our hostels occupy. No other hostel operator offers the same range of premium sites in leading locations making the Safestay network uniquely positioned in a sector that is growing rapidly," said Chair Larry Lipman.
Shares in Safestay were down 4.4% at 32.03 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
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