AIM:SSTY · Consumer Discretionary · Hospitality / hostel accommodation operator, AIM-listed (London Stock Exchange)

Safestay plc

Safestay plc develops and operates a brand of contemporary, premium hostels in prime locations across the UK and key European tourist cities, serving young travellers, families and business travellers. The Group pursues a capital-light growth strategy combining owned/leased hostels with a new franchising model, and at 31 December 2025 operated 22 hostels (including two in development and three franchised) across 12 countries.

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Sources: Companies House (10)

FY2026Next report expected 27 Jun 2027
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Sixty seconds on the FY2025 report
Safestay runs hostels in prime UK and European city locations. In 2025 its revenue fell to £20.6m from £22.5m. Its loss before tax widened to £10.1m from £3.1m the year before. Fewer guests stayed, the average price per bed fell 6% amid strong competition, and staff costs rose. Much of the loss came from one-off charges. The company wrote down the value of goodwill (the premium paid for past acquisitions) and of some hostel properties, and made a loss on selling its Edinburgh and Brighton buildings. A Covid-era insurance payout partly offset these costs. The company ended the year with £2.7m of cash. Its borrowings fell to £21.3m from £26.7m as it repaid debt. No dividend was paid. Management said bed prices so far in 2026 are slightly ahead of last year. However, the Middle East conflict and new European tourist taxes have reduced how full the hostels are, and costs keep rising. In May 2026 the company agreed to sell its Glasgow building for £5.1m, and it has given notice to leave its Berlin Kurfürstendamm hostel. The auditor gave a clean opinion and raised no doubt about the company's ability to keep going.
From the reportevery line sits on the page it names
What drove revenue
Occupancy and Average Bed Rate (ABR) across the hostel portfolio
Total bed nights decreased 6% to 877,674; ABR decreased 6% to £20.06; occupancy 70.0% (2024: 75.2%); RevPAB fell to £16.43 (2024: £18.56)
page 3
And
Direct booking rate via Cloudbeds PMS and Warsaw booking office reducing OTA commission leakage
37.5% direct booking rate versus a global rate of 26.3%
page 8
What moved the marginheadwind
Higher staff costs across UK and European properties
Adjusted EBITDA fell 43% to £3.7m reflecting revenue decline and inflationary pressures, particularly higher staff costs
page 3
Andheadwind
Competitive pricing environment reducing ABR/RevPAB
ABR fell 6% to £20.06 and RevPAB fell to £16.43 amid highly competitive European hostel pricing
page 14
One-offs in the year
£4.0m charge: Impairment of goodwill
page 13
What management said
In the year to date, ABR is marginally ahead of the prior year; however, occupancy has been impacted by consumer behaviour changes from the Middle East conflict and new European tourist levies increasing travel costs.
page 5
After the year end
May 2026: exchanged contracts for sale of Glasgow freehold property for £5.1 million, proceeds to be applied to loan repayment and working capital
page 45
The dividend
The Directors have not recommended the payment of a dividend for the year (2024: nil); expected dividend yield used in share option valuation model is 0.00%
page 44
Going concern and the audit
Directors prepared going-concern forecasts for at least 12 months from approval, incorporating the Glasgow freehold disposal (£5.1m, exchanged May 2026), Edinburgh and Brighton transactions, and stress/sensitivity scenarios; concluded going concern basis is appropriate. Auditor HaysMac LLP issued an unqualified (unmodified) opinion with no material uncertainty related to going concern; key audit matters were impairment of goodwill/tangible assets/investments in subsidiaries/intercompany receivables, right-of-use assets and lease liabilities (IFRS 16), and valuation of freehold/leasehold property. Group materiality £1.8m (2% of gross assets); Parent Company materiality £809,000.
page 47
The risks it names first
Business/macroeconomic risk: hospitality demand sensitivity to economic cycles, UK cost headwinds (National Living Wage, commodity inflation, FX, Brexit hangover)p.17
Market/source-country risk: dependence on European and school-group travel, Brexit-related and government travel restrictionsp.17
Energy and supply cost inflationp.17
Brand and reputational risk from operational failures, negative publicity or brand infringementp.17
Read from C001129-AR-2025-ch.
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