Safestay, the Aim-listed property developer of upmarket hostels, said its performance for the year was on track after increasing the number of beds in its portfolio by over 1,000 during the past year.
The company, which was founded five years ago with the idea of sprucing up the hostel market, added a fourth hostel to its portfolio in September after snapping up a freehold site in Edinburgh for £14.9m.
Safestay said the first few months of trading following a revamp of the hostel have been positive and it expects to see an uplift in occupancy in the coming year.
In August, the company launched a hostel inside a Grade I-listed Jacobean mansion in London’s Holland Park after a hotly contested battle for the leasehold. Safestay said the 368-bed hostel has attracted strong interest so far.
Its other sites in York and London's Elephant and Castle – located in the former Labour party headquarters at John Smith House – have also performed well, thanks to a rise in visitor numbers and improving occupancy.
The two openings in Edinburgh and Holland Park have boosted the number of beds in its portfolio from 560 to 1500 – or 500,000 bed nights per year.
"Demand from the traditional customer base of young travellers and school and college groups was good, augmented by growing interest from new hostel customers, such as business travellers and young families," the company said.