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Safestay PLC on Monday hailed record annual revenue in calendar 2024 and reported a narrowed loss despite what it called a ‘challenging macroeconomic environment’.
The London-based hostel operator said pretax loss narrowed to £407,000 in 2024 from £757,000 in 2023. Revenue improved 4.7% to £22.5 million from £21.5 million. Including discontinued operations, revenue in 2024 amounted to a record £23.0 million, up from £22.5 million.
UK sales increased by 8.4% to £9.0 million in 2024 from £8.3 million in 2023. Overseas sales fell slightly to £14.0 million from £14.2 million, due to unfavourable movements in the euro.
‘I am pleased to report a year of good strategic and operational progress with record revenues achieved despite the challenging macroeconomic environment. This performance was underpinned by a 10% increase in bed nights and a 4% increase in occupancy,’ Chair Larry Lipman said.
‘Whilst consumer confidence continues to remain under pressure, we remain confident in our highly relevant customer proposition. We have a clear strategy to capitalise on the significant growth opportunities in the international hostel market, including several promising prospects in our expansion pipeline.’
Safestay reported a 10% increase in total bed nights to 931,688 from 848,633 while occupancy improved by 3.8% to 75.2% from 71.4%.
Shares in Safestay were up 3.0% to 25.75 pence each in London midday Monday.
The company said forward bookings in 2025 are running at a ‘satisfactory level’, despite a ‘continued competitive pricing environment’.
‘With several further expansion opportunities being appraised the board remains highly confident that Safestay is well placed to deliver its medium-term ambitions of doubling the size of its portfolio,’ the company added.
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