23rd Jun 2025 12:11
(Alliance News) - Safestay PLC on Monday hailed record annual revenue in calendar 2024 and reported a narrowed loss despite what it called a "challenging macroeconomic environment".
The London-based hostel operator said pretax loss narrowed to GBP407,000 in 2024 from GBP757,000 in 2023. Revenue improved 4.7% to GBP22.5 million from GBP21.5 million. Including discontinued operations, revenue in 2024 amounted to a record GBP23.0 million, up from GBP22.5 million.
UK sales increased by 8.4% to GBP9.0 million in 2024 from GBP8.3 million in 2023. Overseas sales fell slightly to GBP14.0 million from GBP14.2 million, due to unfavourable movements in the euro.
"I am pleased to report a year of good strategic and operational progress with record revenues achieved despite the challenging macroeconomic environment. This performance was underpinned by a 10% increase in bed nights and a 4% increase in occupancy," Chair Larry Lipman said.
"Whilst consumer confidence continues to remain under pressure, we remain confident in our highly relevant customer proposition. We have a clear strategy to capitalise on the significant growth opportunities in the international hostel market, including several promising prospects in our expansion pipeline."
Safestay reported a 10% increase in total bed nights to 931,688 from 848,633 while occupancy improved by 3.8% to 75.2% from 71.4%.
Shares in Safestay were up 3.0% to 25.75 pence each in London midday Monday.
The company said forward bookings in 2025 are running at a "satisfactory level", despite a "continued competitive pricing environment".
"With several further expansion opportunities being appraised the board remains highly confident that Safestay is well placed to deliver its medium-term ambitions of doubling the size of its portfolio," the company added.
By Jeremy Cutler, Alliance News reporter
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