Safestay, one of Europe’s leading hostel groups, has secured a £1.4 million payout through its business interruption insurance.
The claim pertains to business disruption Safestay experienced during the COVID-19 pandemic, which began over five years ago.
The company stated that the £1.4 million payment is expected within the next 21 days and will be recognised as a post-balance sheet event in its 2024 financial results, due later this month.
Safestay’s UK portfolio currently comprises five hostels located in York, London, Edinburgh, and Glasgow. The group aims to more than double its footprint to over 50 sites within the next five years and has already secured planning permission for a new 170-bed hostel in Brighton.
Many hospitality businesses have faced protracted battles with insurers over pandemic-related payouts. Notable victories include restaurant groups Corbin & King and PizzaExpress, as well as 1863 Restaurant with Rooms in Pooley Bridge and the now-closed Michelin-starred SY23 in Aberystwyth, all of which won court rulings in their favour.
Restaurant chains Flat Iron and Wahaca have also reached settlements in their legal disputes with insurers, according to Stewarts Law.
