1 May 2024
Safestay
plc
("Safestay", the "Company" or the "Group")
Acquisition of Spanish Hotel
in Cordoba
Building critical mass in
Spain with the addition of a fifth property
Safestay (AIM: SSTY), the owner and
operator of an international brand of contemporary hostels, is
pleased to announce the acquisition of the Hotel Lineros from Mr.
Antonio Medina Molera, Ms. Carmen Fernandez Gude and
A. MEDINA MOLERA, S.L.U. The property has 30 freehold
bedrooms and is situated in the very centre of the ancient city of
Cordoba, 60 miles north of Malaga. Under the Safestay brand the
site will be converted into a 100 bed hostel. The cash
consideration will be €2 million funded from the Group's existing
cash balance.
Hotel Lineros is a spectacular
building and a natural fit with the Group's portfolio of unique
properties. Set over three floors, the property has been
constructed in the local Moorish style, with an attractive atrium
courtyard, large roof terrace, Moroccan marble sinks and richly
decorated wood window shutters. Generating an individual ambience
that is expected to appeal strongly to our target
customers.
The hotel is ideally located just a
short walk from Cordoba's famous ancient mosque, La Mezquita, built
in 784 A.D. and attracting 1.5 million visitors each year. The
historic city centre is also a major tourist destination and a
UNESCO world heritage site. The property is currently run as a
hotel, and whilst undergoing a conversion process, is
expected in the eight months to 31 December 2024 to generate
revenues of approximately €230,000 and EBITDA of
€40,000.
On 1 May, the Company will begin a
gradual conversion of the site into a 100-bed hostel, as well as a
Safestay brand redecoration programme, with six of the bedrooms
converted to 4-6 bed dorms, and two bedrooms changed to family
rooms. Every room is already fitted with A/C and it is intended
that the hostel will continue to trade through this process
fulfilling all pre-existing bookings.
The acquisition is a part of
building critical mass in key markets, including Spain, and follows
last month's announcement of a management contract to run the
resort-based 120 bed Calpe Seafront Hostel on Spain's Costa Blanca.
Hotel Lineros is the Group's fifth property in Spain alongside a
hostel in Madrid and two in Barcelona and is the first in the
popular tourist region of Andalusia.
It is expected that the new site
will fit easily into the Safestay portfolio and benefit from the
well tested sales and yield management systems. It will also
benefit from the Group's economies of scale and overall marketing
programme which last year welcomed 848,633 guests across the
portfolio.
Larry Lipman, Chairman of Safestay, said,
"We are very excited with the acquisition of this
unique and beautiful property in the historic City of Cordoba. It
will open as Safestay Cordoba, paying homage to the UNESCO World
Heritage status the magnificent city centre has. Cordoba will be
our 5th property in Spain and 19th in our collection
of upmarket hostels across Europe. Our guests are looking for
'travel experiences' and I feel confident that this unique property
with its rooftop bar, central setting and Moorish charm will
perfectly suit our customer base of travellers, families and
schools."
Enquiries:
Safestay
plc
Tel: +44 (0) 20 8815 1600
Larry Lipman
Liberum (Nomad
& Joint Broker)
Tel: +44 (0) 20 3100 2000
Andrew Godber / Edward Thomas / Josh
Borlant
Novella
Tel: +44 (0) 20 3151 7008
Tim Robertson / Safia Colebrook
For
more information visit our:
Website www.safestay.com
Vox Markets page https://www.voxmarkets.co.uk/company/SSTY/news/
Instagram page www.instagram.com/safestayhostels/