Hostel firm with Edinburgh and Glasgow sites eyes reopening roadmap

Safestay, the stock market listed hostel operator with sites in Edinburgh and Glasgow, has said it plans to reopen over the course of the year but with major changes to the experience for customers.

Safestay is a hostel operator with sites in Edinburgh and Glasgow.

The firm, which has nearly 5,000 beds at 20 hostels in the UK and across Europe, said it has been closed since 1 April with the majority of staff furloughed or receiving support from governments in the countries that it operates.

In a trading update, the group said: “Check-in will be completed via WhatsApp, hand sanitiser gel, masks and gloves will be made available, common rooms including the restaurant areas will be closed, breakfasts will instead be served in boxes.

Sign up to our daily newsletter

The i newsletter cut through the noise

“A substantially increased cleaning rota will be introduced and no shared rooms will be sold, and instead rooms will be sold to individuals or groups who are known to each other.”

The firm also pointed to a £5 million overdraft with HSBC and said it was positive that it had sufficient cash to get through the current crisis.

Rents have been suspended or reduced after negotiations with landlords helped to reduce the monthly costs to £600,000-a-month, of which half is deferred.

The company told investors: “With this as a starting point, the hostels will adapt their operating structures according to market conditions over the course of 2020 with the emphasis on matching operational costs with income. It will require flexibility and careful monitoring across all our markets.

“We believe that Safestay has the infrastructure in place to manage the re-engagement and that ultimately, we will find the route to returning our portfolio of hostels to pre-Covid-19 levels.”

The group currently has five sites in the UK, with its flagship Edinburgh hostel by far the biggest, offering 618 beds. Last September, the firm agreed an acquisition of a Glasgow hotel.

Read More

Read More
City centre Glasgow hotel to be turned into major hostel

A message from the Editor:

Thank you for reading this story on our website. While I have your attention, I also have an important request to make of you.

With the coronavirus lockdown having a major impact on many of our advertisers - and consequently the revenue we receive - we are more reliant than ever on you taking out a digital subscription.

Subscribe to scotsman.com and enjoy unlimited access to Scottish news and information online and on our app. With a digital subscription, you can read more than 5 articles, see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Visit https://www.scotsman.com/subscriptions now to sign up.

Our journalism costs money and we rely on advertising, print and digital revenues to help to support them. By supporting us, we are able to support you in providing trusted, fact-checked content for this website.

Joy Yates

Editorial Director

 0 comments

Want to join the conversation? Please or to comment on this article.