13th Jun 2019 13:41
(Alliance News) - Hostels operator Safestay PLC said Thursday it has bought Hostel Pisa for EUR3.3 million cash, as part of its strategy to establish a pan-European network of hostels located in popular tourist cities.
The acquisition of the 161-bed hostel in Pisa, Italy, takes the UK company's portfolio to 14 hostels.
Safestay said it remains confident of reaching its shorter-term target of owning and operating 20 hostels.
The freehold hostel in Pisa generated earnings before interest, taxes, depreciation and amortisation of EUR300,000 and revenue of EUR800,000 in 2018.
The acquisition consideration will be satisfied from Safestay's existing cash resources. The company intends to spend another EUR50,000 to re-brand the hostel.
"The group as a whole is trading well and in line with market expectations. Demand has been strong overall and bookings for the summer look good," Chair Larry Lipman said.
Shares in Safestay were trading 3.7% higher on Thursday afternoon at 33.70 pence each.
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