The operator of city hostels Safestay will return to the capital following the purchase of a £4.3 million property in the Cowgate.
The company sold its 615 bed backpacker hostel on Blackfriars Street during the pandemic but it has now committed to buy the six storey building which until now has been a hostel with the upper three floors let to the Faculty of Advocates. Safestay said the building will need general refurbishment but that it will be open for business in summer 2024.
There will be more than 200 beds some with ensuite bathrooms or shower rooms.
A spokesperson for Safestay said: “Edinburgh is a city the company knows well, having owned and operated a successful 615-bed hostel for six years in this city until the pandemic in 2021 when it was sold for £16 million. Edinburgh is a leading European city, attracting large numbers of tourists and visitors every year, many of whom are looking for central and affordable accommodation.
“As a result, the group’s hostel portfolio now consists of 17 operating hostels and, with the addition of Edinburgh, the number of beds across the portfolio increases to 3,476.”
The company explained the price paid for the Cowgate property would be met from its existing cash resources.
Chairman Larry Lipman said: “We never wanted to leave Edinburgh for long and are delighted to return and link up with our other Scottish site in Glasgow. Edinburgh is a truly stunning city and a key destination for millions of young travellers to visit. The property is superbly positioned right in the centre with easy access to all the main attractions and we feel confident, knowing this market as we do, that it will be a strong contributor to the group.
“Our trading performance over the last 18 months since we have been allowed to trade post-pandemic has shown that our market is in good health. Demand and pricing have demonstrably increased, which will increasingly benefit us as we expand the portfolio with excellent sites such as this.“
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