Safestay acquires Cordoba hotel for EUR 2m

1st May 2024 13:34

(Sharecast News) - Safestay announced the acquisition of Hotel Lineros in Cordoba, Spain on Wednesday, for €2m.

The AIM-traded firm said the property featured 30 freehold bedrooms, and is centrally located in the historic city of Cordoba, known for its ancient mosque, La Mezquita, and Unesco World Heritage status.

It said the Hotel Lineros, designed in the local Moorish style, included an atrium courtyard, a roof terrace, and Moroccan marble sinks.

Beginning on 1 May, Safestay would start a gradual conversion of Hotel Lineros into a 100-bed hostel, alongside a brand redecoration program.

The conversion process would include transforming six bedrooms into four-to-six bed dormitories and converting two bedrooms into family rooms.

It said the hostel would continue to accommodate pre-existing bookings throughout this transition, ensuring a seamless experience for guests.

With anticipated revenue of €0.23m and EBITDA of €40,000 for the eight months to 31 December, Hotel Lineros was expected to contribute positively to Safestay's financial performance.

"We are very excited with the acquisition of this unique and beautiful property in the historic City of Cordoba," said chairman Larry Lipman.

"It will open as Safestay Cordoba, paying homage to the Unesco World Heritage status the magnificent city centre has."

Lipman noted that Cordoba would be the firm's fifth property in Spain, and the 19th in its collection of upmarket hostels across Europe.

"Our guests are looking for 'travel experiences' and I feel confident that this unique property with its rooftop bar, central setting and Moorish charm will perfectly suit our customer base of travellers, families and schools."

At 1002 BST, shares in Safestay were flat at 19p.

Reporting by Josh White for Sharecast.com.