Safestay hostels returns to Edinburgh two years after pandemic exit

Hostel operator Safestay is to return to Edinburgh after pulling out of the city during the pandemic.

The group operated a 615-room backpacker hostel in the city for six years until 2021, when it sold the building for £16m at the height of coronavirus restrictions.

Just two years later, Safestay is set to reopen in Edinburgh after purchasing the freehold of a six-storey, Grade A-listed city centre property on Cowgate Street for £4.3m.

It will undergo a refurbishment before reopening as a 225-bed hostel ahead of the busy summer season next year.

Once complete, the hostel will offer rooms ranging from two to eight beds, some with ensuite facilities.

"We never wanted to leave Edinburgh for long and are delighted to return and link up with our other Scottish site in Glasgow," said Larry Lipman, chairman of Safestay.

"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."

The Edinburgh acquisition takes Safestay's portfolio to a total of 3,476 bedrooms across 17 sites.

It operates four other UK hostels in London, Glasgow and York.