Safestay has acquired U Hostels Albergues Juveniles, SL for €3 million. U Hostels includes three leasehold properties — two in Madrid and one in Paris. Safestay said the purchase is a first step in establishing a pan-European network of hostels.
“Going forward, we will be able to offer guests the ability to transfer seamlessly between Edinburgh, York, London, Paris and Madrid,” the company said. “All great cities and we expect this network to be expanded as we have further transactions under advanced negotiation and the capital in place to complete them.”
The Madrid property is a 226-bed luxury hostel and an apartment block in the city centre. The apartments will be managed by the hostel management team. In Montmartre, Paris, a 2,300 sqm building will be redeveloped into a 260 bed hostel. It is expected to open in 2019. Safestay’s contribution to this redevelopment is capped at €2.3m, which will be funded from existing cash resources. Group chairman Larry Lipman said: “The U Hostels concept of what makes a modern luxury hostel is similar to ours, in terms of providing guests with the opportunity to stay in unique, stylish buildings, located centrally in gateway European cities. The U Hostels portfolio is therefore an excellent fit with us and will increase the Safestay portfolio to 6 hostels and the number of beds we offer to 2,012, excluding the apartments in Madrid.
Safestay is a member of WYSE Travel Confederation.
Source. Stock Market Wire and Digital Look, May 2017