Safestay plc, the owner and operator of premium hostels across Europe, has announced its first-ever franchise agreement, marking a significant step in the group’s capital-light growth strategy. The deal, signed with Sycomore Entwicklungen, brings two properties in Austria’s famous alpine resort of Kitzbühel into the Safestay network.

Rebranding in Kitzbühel

Effective 1 September 2025, the Roomie Alps Design Hostel Kitzbühel and Guesthouse Johanna Hotel will be rebranded as:

• Safestay Kitzbühel Centre
• Safestay Kitzbühel Alpine

Together, the properties will provide 70 beds, located close to ski lifts and Kitzbühel’s vibrant amenities, making them an attractive choice for leisure travelers and winter sports enthusiasts.

Franchise Terms & Growth Strategy

The initial agreement will last for five years, with an option to extend for another five. Under the terms, Safestay will receive fixed annual payments as well as performance-based fees, including commissions on direct bookings through its proprietary platform.

The partnership allows Safestay to expand its footprint without significant capital expenditure, leveraging its brand strength, international sales network, and marketing reach. Meanwhile, Sycomore will gain access to Safestay’s operational systems, HR and recruitment support, yield management tools, and IT infrastructure via the company’s commercial hub in Warsaw, Poland.

Leadership Commentary

Larry Lipman, Chairman of Safestay, stated:

“Our first franchise agreement is an exciting opportunity as we continue our ambitions to double the size of our portfolio over the medium term. Entering a prestigious alpine resort like Kitzbühel demonstrates the flexibility and attractiveness of our franchise model, and we look forward to exploring further opportunities across Europe.”

Nikolaus Kramhaller, Managing Director of Sycomore Entwicklungen, added:

“Our properties are in excellent locations and will benefit from Safestay’s brand and expertise. This partnership is a win-win, enhancing our guest offering while strengthening Safestay’s presence in one of Europe’s most desirable mountain destinations.”

Safestay’s Expanding Portfolio

Safestay currently operates 20 hostels and one hotel across the UK, Spain, Belgium, Czech Republic, Germany, Greece, Italy, Poland, Portugal, and Slovakia. The new franchise agreement in Austria highlights the group’s strategy to expand into high-demand leisure destinations while maintaining a focus on city-centre hostels across Europe.

Conclusion

With its debut franchise agreement in Kitzbühel, Safestay demonstrates the scalability of its model and its ability to expand into diverse markets, from cultural capitals to alpine resorts. The move positions the brand for further franchise-driven growth across Europe.