Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Safestay sees 85% revenue increase to £7.4m

10 April 2017 by
Safestay sees 85% revenue increase to £7.4m

Luxury hostel owner and operator Safestay has reported a revenue uplift to £7.4m in its annual results for the year ended 31 December 2016.

The figure marks an 85% increase, up from £4m in 2015. The company's latest results follow the news last month that the brand had completed an £18.4m debt restructuring and refinancing and sale and leaseback transactions on its Edinburgh (pictured) and Elephant & Castle hostels, raising £12.6m of gross cash proceeds.

Operating profits before financing costs and exceptional costs increased to £1.15m, compared to £210,000 in 2015, and included full-year contributions from the Edinburgh and Holland Park sites.

The company also reported an EBITDA of £2.2m, up from £700,000 the previous year, as well as a reduced loss after tax of £500,000.

Chairman Larry Lipman said: "In 2016 we sold a total of 297,276 individual bed nights compared to 184,061 in 2015, an increase of 61.5%. The business has expanded significantly and the systems and infrastructure to support this growth are in place and are capable of managing current capacity as well as our future plans for expansion.

"The recent restructuring and refinancing has transformed the financial base of the business and provided the necessary resources to support our ambitions."

Safestay announces £18.4m refinancing deal >>

Safestay Hostels appoints new chief operating officer >>

Safestay Edinburgh to open in summer 2016 >>

Videos from The Caterer archives

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs

TagsFinance and Hotels
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking