Safestay said that it was “stable”, with almost all of its sites having now reopened.
The company said that it had operated 45% of its available bed stock for the first six months of 2020, resulting in a 58% fall in total revenue to £3.4m.
The group said that the first half had seen total revenue for January and February up 32% on the previous year, with an underlying like for like increase of 15%. Occupancy rates for the first two months was also up at 64%, against 50% in 2019.
However, during March, the level of bookings reduced significantly following the implementation of travel restrictions cross Europe and the UK and Group took the decision to close all its hostels on 1 April 2020.
Whilst the group began re-opening certain sites from 26 May 2020, overall occupancy rates of the available hostels remained depressed at 55% given the various travel and lockdown restrictions still in force.
The group reduced operating costs wherever possible and utilised government support schemes wherever available and renegotiated rent terms with landlords in each operating territory. In some countries, employees were paid directly by the government whilst being furloughed, which corresponded to a further £300,000 saving.
These actions limited the £4.6m decrease in revenue to a £4.2m swing at the adjusted Ebit level resulting in a loss of £3.3m.
The group reported a loss before tax of £4.7m versus a profit of £900,000 for the first half and a reported loss per share for the period of 7.3p (1H19: 1.4p loss per share).
The company had cash at bank as at 16 September of approximately £1.0m with an agreed a new £5.0m overdraft facility agreed during the period with HSBC.
Larry Lipman, chairman, Safestay, said: "We made a good start to 2020, however, trading was materially impacted by the Covid-19 pandemic from March onwards. We responded quickly to protect our financial position and the safety of our guests and employees.
“As a result, the business is stable and it is encouraging to have now reopened nearly all our hostels. While it is still difficult to predict the pace of our recovery, we are re-engaging effectively with our customer base and we are confident that we will in time return our hostel portfolio to pre-Covid-19 occupancy levels."