The market for travellers looking for cheaper accommodation as they travel the globe is booming. Safestay is hoping to capitalise on that growth.
Hostels operator Safestay is planning to double its portfolio across Europe over the next few years, according to a report in The Times.
Chairman Larry Lipman is reported as saying the company should “easily be able to double over the medium term, which is about three years”.
Currently it runs 20 hostels across Europe, including in the UK where it owns and is responsible for the freehold of five hostels. It also has one freehold hostel in Italy and five in Spain while the rest are run on a leasehold basis.
The company is already reaching out to potential hostel operators via a franchise offer. Lipman was quoted as saying: “They give us the chance to secure other sites without the need for big fistfuls of dollars.
“If we can veer away from buying the buildings we can get more flags in the ground and a larger revenue stream without a capital requirement.”
Although Europe was still the group’s “immediate playing field”, Lipman pointed out that “the growth in Asia and potential in the United States is not lost on us”.
The global hostel market is attracting more custom as budget-conscious travellers look to experience different countries within a more sociable group atmosphere than is found in hotels.
The global hostel market is set to be worth around $12.1bn (€11.6bn) by 2033, according to Safestay, quoting Hostel Market Outlook 2023 – 233, Future Market Insights.
