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 >>
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