York success for Safestay as overseas tourists pay a visit
Safestay bought a Georgian mansion in York in 2014 undertook a complete refurbishment of the building. A night's stay typically costs less than £25 a night, making it a cheap option for budget conscious travellers.
Larry Lipman, chairman of Safestay, said: "York is doing really nicely. We are very pleased with progress. There is a growth in travel to York and the city is seeing a lot of interest from Asian markets.
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Hide AdSafestay said York is seeing strong improvement in EBITDA against modest revenue growth. The York hostel is seeing the strongest average bed rates in the group over popular Spring weekends while the mid-week business continues to build.
"There is always the potential for business travellers," said Mr Lipman.
"I liken us to EasyJet, a low cost airline that found people on its planes wearing suits."
The group, which also has hostels in London and Edinburgh, said the average bed price is stable at £18 per night and the group has seen excellent guest satisfaction scores.
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Hide AdThe group said revenue more than doubled to £3.3m in the first half of 2016.
“The business is progressing well, like-for-like revenues and margins are improving and we have now successfully put in place the systems and infrastructure to support multiple hostels as part of our growth planning," said Mr Lipman.
"The European tourism market has been facing some headwinds through 2016 driven primarily by acts of terrorism, softening economies and political instability which has notably had a well reported impact on London’s hospitality sector performance. The group’s exposure to this market, with two hostels, compounded by Holland Park being a new entrant, has created a drag on the 2016 performance."