28th Oct 2019 09:29
(Alliance News) - Safestay PLC said Monday it will to acquire the prime boutique hostel AthenStyle in Athens, Greece for EUR1.5 million.
The hostel operator said it expects to complete the acquisition by January 15, 2020 with an 18-year lease.
Safestay said EUR1.5 million payment will be satisfied from its existing cash resources.
The 150-bed AthenStyle hostel, generated sales of EUR700,000 and earnings before interest, taxes, depreciation and amortization of EUR200,000 for 2018.
Following the acquisition, Safestay's portfolio consists of five sites in the UK and 12 in Europe, including cities such as London, Paris, Venice and Barcelona.
"AthenStyle is a strong addition to our portfolio as it is already popular, stylishly designed and sits right in the heart of the City. It will be a straightforward process to re-brand the site, integrate with our cloud-based booking systems and should be immediately earnings enhancing," said Chair Larry Lipman.
Safestay shares were down 2.4% in London at 31.02 pence each on Monday morning.
By Loreta Juodagalvyte; [email protected]
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