Exclusive – Beds & Bars ‘well-positioned to capitalise on expansion opportunities’ but market conditions causing challenges in securing suitable properties, turnover increases to record £72.8m: The pan-European hostel company Beds & Bars, led by Keith Knowles, has said it is “well-positioned to capitalise on expansion opportunities” but market conditions are causing challenges in securing suitable properties. It comes as the group, which operate 4.500 beds in nine countries and employs around 800 staff, reported revenue increased to a record £72,783,815 for the year ending 30 March 2024 compared with £68,852,382 the previous year. Of that figure, £24,512,671 came from the UK (2023: £22,822,794) and £48,271,144 from the rest of Europe (2023: £46,029,588). Ebitda stood at £8,212,234 compared with £10,083,898 the year before. Pre-tax profit was down to £3,048,348 from £5,615,036 the previous year. In his report accompanying the accounts, Knowles stated: “This growth is a testament to the strength and resilience of our brand, as well as the adaptability of our operations. Our larger, integrated units in key locations such as London, Edinburgh, and European capitals have continued to perform well, with accommodation revenues remaining strong and occupancy consistently high. Our focused approach to providing unforgettable experiences for our guests has positioned us well, particularly as we see new customer behaviours emerging among Generation Z travellers. While there were some increases in operational costs, most notably in labour and energy costs, we view this as a reflection of the investments we've made in enhancing the overall guest experience and maintaining our position as a leading provider in our sector. Our sophisticated real-time yield management system continues to optimise both occupancy and net bed rates, ensuring we remain competitive across all markets. During FY2025 there has been an industry-wide reduction in European net bed rates as competition from lower priced south east Asia is attracting our knowledgeable and cost conscious global travelling guests. We are confident in our ability to navigate the evolving landscape, as we see continued interest in European travel in the long term and a growing desire for adventure and unique experiences among our target demographic. Looking ahead, we are well-positioned to capitalise on new opportunities for expansion. Although we have encountered challenges in securing additional suitable hostels due to market conditions, we remain committed to our growth strategy. Our team is focused on identifying the right opportunities, and we are confident that our disciplined approach will yield positive results in the near future. Despite the short-term impact to European tourism, with a solid operational foundation, a strong brand, and an experienced team, Beds & Bars is confident in its long-term growth prospects.” No dividend was paid (2023: nil). Beds & Bars features in the Premium Club Turnover & Profits Blue Book, which is available exclusively to Premium Club members and features 1,039 companies. Beds & Bars’ turnover of £72,783,815 is the 150th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

Sector figures recognised in King’s New Year’s Honours: Kan Koo, chief executive of buffet brand Cosmo, and Bill Toner, chief executive of independent caterer CH&Co, were among those from the sector recognised in the King’s New Year’s Honours. Koo and Toner were both made MBEs for services to the hospitality industry. Meanwhile, chef Niall McKenna received an MBE for services to hospitality and tourism and local food and drink producers in Northern Ireland. The chef owns the James St and Waterman House restaurants in Belfast and has run a chef apprenticeship scheme in partnership with Belfast Metropolitan College since 2014. Esther Brittan, HR operations manager UK& Ireland at Hilton, was made an MBE for volunteering and charity services to young people. She manages Hilton’s partnerships with organisations that help people into work, including Springboard and Only a Pavement Away. More than 1,200 people received honours this year across all sectors.

HMSHost UK exits seven underperforming sites, reports turnover exceeds pre-covid levels to hit record £89.5m: The UK and French division of HMSHost, which operates sites in travel hubs, has exited seven underperforming sites. It comes as the company reported turnover increased to a record £89,455,838 for the year ending 31 December 2023 compared with £61,502,491 the year before. Revenue also exceeded the £65,287,619 for the year ending 31 December 2019 – the last full year before the covid pandemic. Ebitda stood at minus £1,634,371 compared with minus £2,660,166 the previous year. Pre-tax losses narrowed to £7,930,802 from £9,001,070 the year before (2019: profit of £886,808). In their report accompanying the accounts, the directors stated: “Turnover increased significantly due to continuation of passenger numbers' recovery following the covid-19 pandemic and a full year of trading from stores opened during 2022. In line with our strategy, lease modifications were agreed for exit costs of £1.7m (2022: nil) relating to seven underperforming units and an impairment charge of £0.9m and lease modification cost of £1.7m have been recognised in the income statement of the current financial year. The impact of the closures while reducing turnover will improve the overall profitability of the company. Trading remains challenging with significant increases in utility and general input costs (preventing planned maintenance). Labour cost also increased significantly due to the difficult recruitment market across the UK.” No dividend was paid (2022: nil). The group employs around 1,350 staff.