The marketplace for travellers on the lookout for cheaper lodging as they journey the globe is booming. Safestay is hoping to capitalise on that progress.
Hostels operator Safestay is planning to double its portfolio throughout Europe over the subsequent few years, based on a report in The Occasions.
Chairman Larry Lipman is reported as saying the corporate ought to “simply be capable to double over the medium time period, which is about three years”.
At the moment it runs 20 hostels throughout Europe, together with within the UK the place it owns and is answerable for the freehold of 5 hostels. It additionally has one freehold hostel in Italy and 5 in Spain whereas the remaining are run on a leasehold foundation.
The corporate is already reaching out to potential hostel operators by way of a franchise provide. Lipman was quoted as saying: “They offer us the prospect to safe different websites with out the necessity for large fistfuls of {dollars}.
“If we can veer away from shopping for the buildings we will get extra flags within the floor and a bigger income stream with out a capital requirement.”
Though Europe was nonetheless the group’s “rapid enjoying subject”, Lipman identified that “the expansion in Asia and potential in america just isn’t misplaced on us”.
The worldwide hostel market is attracting extra customized as budget-conscious travellers look to expertise totally different nations inside a extra sociable group ambiance than is present in inns.
The worldwide hostel market is about to be price round $12.1bn (€11.6bn) by 2033, based on Safestay, quoting Hostel Market Outlook 2023 – 233, Future Market Insights.