Hostel group Safestay has acquired a new property in Budapest as part of its continued expansion into mainland Europe.
The London-listed company, which is headquartered in the city, said the five-storey site, located near the Danube River and Budapest’s shopping district, will allow it to add an additional 150 beds to its network, bringing its total to 3,580 beds across 18 sites.
Safestay said it had signed a five-year lease with Curzon Capital, with options to extend for two additional five-year terms.
The expected first-year revenue of the hostel is €350,000 (£299,000), with the site set to boost Safestay’s Eastern European presence.
The announcement follows the company’s £2.27m acquisition in June of a former-university building in Brighton, which it is set to turn into a 220-bed hostel.
Larry Lipman, chairman of Safestay, said: “We are very pleased to announce the acquisition of a leasehold property in the heart of Budapest, a vibrant European tourist destination.
“This site has excellent potential and, following refurbishment, will be a fantastic addition to Safestay’s portfolio of premium, well-located hostels.
This agreement builds on the group’s exciting expansion over the past few months and reflects continued progress against our growth strategy.”
In June Safestay reported that its losses had continued to mount, despite the company seeing an increased number of business travellers checking in to its properties.
The business saw its pre-tax loss hit £1.3m in the year ending December 31, 2024, an increase of £1.2m on the previous year.
Despite this, Safestay’s revenue increased to £22.5m, which was up 16 per cent year-on-year, with occupancy rates hitting 71.4 per cent – a rise from 63 per cent.
The group said this had been driven by more bookings coming in from business travellers, who had been showing increased interest in the chain’s city centre locations.