Beds & Bars reports 'another successful year' for 2017

By Georgina Townshend contact

- Last updated on GMT

Good year: Beds and Bars has reported a 5% increase year on year on like-for-like sales
Good year: Beds and Bars has reported a 5% increase year on year on like-for-like sales

Related tags: 2016

Backpacker bar and hostel operator Beds & Bars has reported that like-for-like sales have increased 5% year on year, rising to £47.7m from April 2016 to March 2017 despite "political, social and economical obstacles hitting the businesses hard".

According to the company, gross margin was maintained at more than 80% and its EBITDA was up 9% to £4.47m.

During the past year the company has also focused on expanding and developing its sites.

A spokesman for Beds & Bars said: “The past year was one of investment in our core properties, including the Flying Horse in Liverpool Street and our unit in Shepherds Bush that were completed, with further enhancements already underway in 2018.” 

The Flying Horse extension involved adding 34 new beds, expected to generate £245,000 in revenue and £145,000 in EBITDA in the current financial year.

The Group sold its unit in Covent Garden, which made funds available to invest £6.5m in the refurbishment and extension of its flagship hostel “the Village” in Borough High Street, London. 

Obstacles

The spokesman continued: "The company has excelled despite some of the political, social and economical obstacles hitting businesses hard in the past year, including wage increments, business rate hikes and Brexit, that has had a particular strain on the hospitality industry with labour shortages and supplier price hikes.

"Not to mention the elections in Barcelona and terrorism in key cities where our sites are based. Beds and Bars has come out stronger than ever despite these hurdles."

The group reported that it is planning to further expand in Europe and had partnered with a French investment house to lease sites in selected capital cities on a turnkey basis. The company is actively seeking further partners in the new year, to expand the business in capital cities across Europe, it said.

Investment has been ongoing in the web booking engine, including a multi-language feature and new no deposit model, which has enabled the group to increase its direct booking in the face of fierce competition from online travel agencies.

Related topics: Other operators

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