Safestay, the U.K.-based owner and operator of contemporary hostels, has reported a wider pretax loss for the first half of 2023 despite experiencing revenue growth. The company also announced that forward bookings for the remainder of the year are significantly ahead.
For the six months ended June 30, Safestay’s pretax loss amounted to £1.0 million ($1.2 million) compared to a loss of £339,000 in the same period last year. However, revenue surpassed prepandemic levels, increasing from £7.3 million to £10.5 million.
Earnings before interest, taxes, depreciation, and amortization (EBITDA), a preferred metric for the company, reached £2.6 million, slightly higher than the previous year’s £2.5 million.
Occupancy and Bed Metrics
While the occupancy rate improved from 51% to 68.5%, it remained below pre-Covid levels. However, Safestay’s revenue per available bed (REVPAB) increased from £11.77 in 2019 to £16.06.
Outlook and Future Growth
Chairman Larry Lipman expressed confidence in the company’s performance, stating, “Our trading results for the first half of the year and the first two months of the summer show we are comfortably on track for the year and that we are well placed to continue to increase occupancy and average bed rate into 2024.”
Shares of Safestay showed a positive trend, with a 1.9% increase to 26.50 pence at 0725 GMT.