|Master Investor Magazine
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AIM-listed hostel business Safestay (LON:SSTY) has announced the acquisition of a 32 room hotel in central Berlin for a €1.2 million consideration. Management said that the property was ideal for conversion into a 150 bed hostel and brings the company’s network of European sites to 18.
Chairman Larry Lipman said: “Berlin is a key tourist city which attracts around 13.5 million visitors each year and the hotel benefits from a desirable position in the centre of the town, which makes it a perfect fit for our portfolio of premium hostels. Acquiring existing leaseholds enables us to expand our reach more rapidly throughout Europe and gives us operating platforms which are immediately cash accretive. It also complements recent freehold acquisitions in Pisa, Glasgow and Venice. Our experience of converting small hotels to hostels makes us confident of being able to quickly release the potential of this site and deliver revenue growth.
“Our operational success confirms we have established the Safestay model as the right one for our guests, and our focus is now firmly on expanding our network and making Safestay one of the largest hostel operators in Europe“.
The price of Safestay shares rose by 6.25% to 34p (as of 12:35 GMT).