Safestay wins £1.4m Covid business interruption payout

Safestay, one of Europe’s largest hostel groups, has been awarded a £1.4m business interruption insurance payout.

The claim relates to business interruption the group experienced during the pandemic, which began more than five years ago.

Safestay said it would receive the payment in the next 21 days, and it would be recognised as a post-balance sheet event when its 2024 financial results were released later this month.

The group’s UK portfolio includes five hostels across York, London, Edinburgh and Glasgow. Safestay plans to more than double in size to over 50 locations in the next five years and has secured planning permission to develop a 170-bed hostel in Brighton.

Many hospitality businesses have faced a battle with insurers over payouts relating to the pandemic.

Restaurant groups Corbin & King and PizzaExpress as well as 1863 Restaurant with Rooms in Pooley Bridge and the now-closed Michelin-starred restaurant SY23 in Aberystwyth have all won court battles with their insurers.

Restaurant chains Flat Iron and Wahaca have also settled legal challenges with their insurance companies, according to Stewarts Law.