Safestay Buys Third Barcelona Hostel For EUR3.0 Million

8th Mar 2018 11:09

LONDON (Alliance News) - Hostel owner Safestay PLC said Thursday it acquired its third hostel in the Spanish city of Barcelona for EUR3.0 million in cash.

Safestay acquired the 340-bed Barcelona Centric hostel in the city from Equity Point Hostels. Safestay will pay an initial EUR700,000 and then four payments of EUR575,000 over the next four years.

In 2017, the hostel generated earnings before interest, tax, depreciation and amortisation of EUR574,000 on revenue of EUR2.4 million.

"We know the Barcelona market well and we know there is high demand for our premium hostel offer," Safestay Chairman Larry Lipman said. "We are therefore fully confident of integrating this new site into the group and using it to expand our presence in what is a very popular gity. Our European acquisitions last year in this gity and in Prague, Lisbon and Madrid are all performing well."

"The global hostel market is booming and we are benefitting from this increase in awareness and popularity," Lipman added. "Importantly, we have in place the operational strength to support a much larger business across multiple geographies and we look forward to making further significant progress in 2018."

After the deal, Safestay now has 2,646 beds in 10 operating hostels.

Shares in Safestay were 1.9% lower at 47.10 pence on Thursday.

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