York boutique hostel operator seeks takeover bids

Upmarket hostel operator Safestay is inviting takeover bids after receiving a “very early stage and highly conditional” approach from a potential buyer.

Safestay bought the Georgian mansion in York in 2014 and undertook a complete refurbishment of the building

The group, which has a boutique hostel in York, said it will review options, including selling the company.

Safestay, which bought the Georgian mansion in York in 2014 and undertook a complete refurbishment of the building, has suffered during the lockdowns and travel restrictions of the past year

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The group's chairman, Larry Lipman, said: “From May we began reopening our portfolio of premium hostels and we have seen occupancy improve month on month in line with internal forecasts.

“We believe strongly in the appeal of the Safestay brand. However, we recognise that this is a natural point, as we relaunch the business post Covid, to undertake a strategic review, in order to maximise value for all shareholders.

“This process will reveal whether there is additional value for shareholders compared to the upside we believe we can deliver.”