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Safestay Acquires Brussels Hotel for EUR 1.6m
Friday 12 October 2018

12 October 2018 - UK-based hostel operator Safestay (AIM: SSTY) has acquired its eighth European property, currently operating as Hotel Opera in central Brussels, for EUR 1.6m (USD 1.85m), the company said.

Positioned on Rue Grétry just off Brussel's famous Grand Place, considered one of the world's most beautiful squares, the 50 bedroom property known as Hotel Opera, is an independent hotel that has been popular with visitors to the Belgian capital for over 30 years.

Consistent with the company's strategy of acquiring properties that can be successfully developed into a Safestay hostel, Hotel Opera is well located and can be rebranded and converted into a 200 bed hostel relatively quickly.

The property is leasehold with a remaining term of five years and an option to extend to 2032. The total consideration of EUR 1.6m will be satisfied by a cash payment of EUR 1.4m, from the group's existing cash resources, and the assumption of EUR 200,000 of debt.

The conversion of Hotel Opera is expected to complete by the end of January 2019 and cost c. EUR 200,000.

Safestay portfolio now consists of 12 premium hostels located in Brussels, Paris (under construction), 3 in Barcelona, Madrid, 2 in London, Edinburgh, York, Lisbon and Prague.
Details
Date Published: 12/10/2018
Target: Hotel Opera in central Brussels
Country: Belgium
Deal Size: 1.85m (USD)
Sector: Hotels/Restaurants/Casinos/Catering
Type: Corporate acquisition
Financing: Cash
Status: Closed
Vendor:
Buyer: Safestay
Comment:


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