Safestay signs 12-year lease agreement with Italy's Ma Creo

(Sharecast News) - Hostel operator Safestay said on Monday that it has inked a 12-year lease agreement to operate a 300-bed hostel in the centre of Naples, Italy.

Safestay said the hostel, set inside a former monastery, was set to open in August, subject to final licensing requirements.

The AIM-listed firm stated the lease agreement, signed with Italian property developer Ma Creo, signalled the commencement of a strategic partnership between the two parties, with the aim of opening additional high-quality and community-focused hostels across Italy over the coming years.

Safestay said the hostel was located in Naples' Materdei district, just 100 metres away from the Materdei underground station, and retains numerous historic features, including an entrance through a preserved chapel.

Chairman Larry Lipman said: "We are delighted to announce the lease agreement to operate such a historic property in Naples, one of Europe's most vibrant tourist destinations. This site - which is Safestay's second in Italy - has great potential and will be a fantastic addition to our portfolio of premium, well-located hostels.

"This agreement also marks the beginning of a partnership with Ma Creo srl with the intention to open more hostels across Italy as part of our growth strategy and medium-term ambitions to double the size of the Safestay portfolio."

As of 0830 BST, Safestay shares were down 5.27% at 23.21p.

Reporting by Iain Gilbert at Sharecast.com