Hostel operator Safestay is preparing for significant growth, with plans to double its portfolio across Europe in the coming years, according to a report in The Times.
Chairman Larry Lipman expressed confidence in the company’s trajectory, stating that Safestay should “easily be able to double over the medium term, which is about three years.” This ambitious plan reflects the company’s strategic efforts to expand its footprint and capture a larger share of the growing hostel market.
Currently, Safestay operates 20 hostels across Europe, including five freehold properties in the UK, one in Italy, and five in Spain. The remaining hostels are managed on a leasehold basis. To facilitate further expansion, the company is actively exploring franchise opportunities. Lipman noted that franchises “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.”
While Europe remains the company’s “immediate playing field,” Lipman acknowledged the potential for growth in other regions. “The growth in Asia and potential in the United States is not lost on us,” he added, hinting at future opportunities for global expansion.
The global hostel market is increasingly appealing to budget-conscious travelers who seek to explore new destinations in a sociable group environment, which hostels offer in contrast to traditional hotels. The market is projected to grow significantly, with an estimated value of $12.1 billion (€11.6 billion) by 2033, according to the Hostel Market Outlook 2023–2033 report by Future Market Insights.
As Safestay looks to the future, its combination of strategic franchising and expansion into new territories positions it as a key player in the evolving hostel industry.
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Safestay’s Bold Plan: Doubling European Portfolio and Eyeing Global Expansion
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