New markets driving momentum for Safestay

Safestay warmed the market up for its full year results on Monday, citing its ongoing expansion and good growth at its existing sites as driving momentum.

The AIM-traded hostel owner and operator significantly increased the number of beds in its portfolio from 560 to 1500 over the year to 31 December, and said continued demand from its traditional customer base of young travellers, and school and college groups remained good.

It also said that demand was augmented by growing interest in new hostel customers, such as business travellers and young families.

Safestay's board said it expected to meet market expectations when it reports for the year.

"2015 was a successful and very active year which saw the company more than double in size," said chairman Larry Lipman.

"We are very focused on continuing to improve the performance of our four existing sites whilst looking for new sites in the UK and Europe," he added.

Lipman said the concept of a modern hostel was becoming more mainstream, with people recognising the opportunity to stay in attractive, safe and clean surroundings.

The board said its highlights during the year included the acquisition of its Edinburgh site for £14.9m in September, the opening of Safestay Holland Park in August, and strong growth at its York and Elephant & Castle sites.

Safestay expected to announce its final results for the year in early April.