Luxury hostel owner and operator Safestay has reported a 23% increase in its half-year revenue to £4.1m.
In its interim results for the six months which ended 30 June 2017, the group says revenue was up from £3.3m during the same period last year, following a full year revenue increase of 85% to £7.4m last year.
It also reported a 62% increase in earnings before interest, tax, depreciation and amortization (EBITDA) to £1.3m.
The company completed an £18.4m debt restructuring and refinancing, and sale and leaseback transaction on its Edinburgh and Elephant & Castle, London, hostels earlier this year, raising £12.6m.
Average occupancy across the group's four UK hostels increased to 71.6% from 63.7% during the same period last year, with the Kensington Holland Park hostel producing like-for-like revenue growth of 31.3% to £800,000.
Larry Lipman, chairman of Safestay, said: "I would point to the improvement in performance at our Kensington Holland Park hostel as a key factor for taking real confidence from our trading performance, as it means all four of our UK hostels are trading to plan."
The 80-bedroom expansion of Safestay's Elephant & Castle hostel will begin soon, estimated to finish in October 2018. Safestay has four hostels in the UK in total.
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