Luxury hostel brand Safestay has announced the opening of a second property in York, following its recent listing on the Alternative Investment Market (AIM) of the London Stock Exchange, which raised £7.6m.
Located in Micklegate House, a grade I-listed Georgian building designed by John Carr of York, Safestay York will join its sister property in Elephant & Castle, London.
Currently undergoing refurbishment, although still open for business, the 160-bed hostel will officially re-launch in August 2014. It will feature bunk-bed dorms, as well as double and twin en-suite rooms.
Design of the property, which is being undertaken by Black Box Interiors, will focus on preserving the original 18th century stone-flagged entrance hall, sweeping staircase and the rococo ceiling featuring Shakespeare's head.
Free Wi-Fi will be available in the communal areas and there will be access to a computer room.
Larry Lipman, chairman of Safestay, said: "We are really pleased to be able to announce the opening of York so soon after successfully listing Safestay on the AIM. As the first and only listed hostel business, we are a game-changer for the industry and we now look forward to further expansion of the brand across the UK & Continental Europe."
Kevin Fogarty, analyst at Westhouse Securities, said: "The group has a profitable and cash-generative business model that achieved revenues and EBITDA of £1.9m and £539,000, respectively, in the financial year 2013. Capitalising on expansion of the hostel market beyond the youth demographic, Safestay offers investors exposure to both income and growth and is NAV-backed."
The Moorfield Group - which entered into a joint venture with Safeland, the parent company of Safestay, in 2011 to develop the 410-bed hostel in Elephant & Castle - sold its 80% stake in Safestay following the company's successful move into the public arena.