Safestay (AIM:SSTY), the owner and operator of contemporary hostels across Europe, reported full-year revenue of £20.6 million for the year ended 31 December 2025, down from £23 million a year earlier, while adjusted EBITDA fell to £3.7 million from £6.5 million.
The statutory loss after tax deepened to £10.1 million, compared with a restated loss of £3.5 million in 2024, weighed down by £6.0 million in non-cash goodwill and fixed asset impairment charges and a £1.4 million loss on asset disposals.
Overseas revenue, which accounts for 59% of the group total, fell 13.5% to £12.1 million, the steeper of the two segments; UK revenue declined 6% to £8.5 million.
Occupancy fell to 70% from 75.2%, and revenue per available bed dropped to £16.43 from £18.56, reflecting both weaker demand and a competitive pricing environment.
The balance sheet improved materially: available cash rose 93% to £2.7 million and gross debt was cut to £14.1 million from £19.5 million, largely through the sale of Edinburgh and Brighton freehold properties and a £1.4 million Covid-19 insurance claim.
"Against the backdrop of a challenging pan-European trading environment, the Board took proactive measures to manage the composition of the portfolio, significantly strengthen the balance sheet, and improve long-term performance," said Chairman Larry Lipman.
Post-period, Safestay agreed to sell its Glasgow freehold for £5.1 million and closed its Berlin property following lease termination and operational pressures; the group's adjusted estate now stands at 20 properties.
Year-to-date average bed rates are marginally ahead of the prior year, though occupancy remains pressured by Middle East conflict-related travel changes and tourist levies in several European cities.
