18th Sep 2019 14:53
(Alliance News) - Hostels operator Safestay PLC said on Wednesday that it has acquired a 52-bedroom hotel in Glasgow for GBP3.2 million.
The property, which is currently operated by Best Western International Inc, will be Safestay's 15th hostel. Safestay has four other sites in the UK and 10 properties in continental Europe.
Safestay said the acquisition is part of its strategy to create a "pan-European network of premium hostels in leading cities".
The property is near Glasgow's Charing Cross railway station, providing transport links to Edinburgh, where Safestay also has hostel.
The freehold property generated GBP820,000 in revenue in the 12 months to January 31, the company added.
Chair Larry Lipman 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."
The acquisition is expected to be completed on October 21 and will be satisfied with the company's existing cash resources.
Shares in Safestay were broadly flat at 32.00 pence each in London on Wednesday afternoon.
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