Safestay (AIM: SSTY) - the branded hostel group is a great concept, but can it make great money?
The owner and operator of a new brand of contemporary hostel, announced its interim results for the six months ended 30 June 2015. Given the number of developments in the period it’s hard to conclude too much from these. Their hostel concept is really excellent and with some wonderful sites the concept looks interesting. But can it deliver material returns to investors?
During the period, the Group operated Safestay hostels in Elephant & Castle and York and substantially completed the refurbishment of the Holland Park hostel which opened to the public in August 2015. Upon completion in September 2015, the Group will be able to offer 781 beds in London each night.
Revenues in H1 2015 increased to £1.4m (H1 2014: £0.5m) but with significant investment in expanding the central infrastructure to manage the expanding portfolio, the…
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