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Hostel With A Long Trading Record In Edinburgh
Edinburgh, City of Edinburgh, ScotlandIdentity protected
Available
About this business
A hostel in Edinburgh that has housed backpackers, festival visitors and school groups since 1997. It trades from leased premises on a retail park on the edge of the city, which suits guests arriving by car or bus, and employs 6. Turnover has fallen each year from £409k to £330k, with EBITDA down from £44k to £32k. The asking price of £75k is below net assets of £112k, which reflects that decline. A buyer with hospitality experience could refresh the rooms and the booking approach to win back guests.
Key investment highlights
- Trading since 1997
- Asking £75k, net assets £112k
- Team of 6
- Leased retail park premises
Reason for sale
The owner is retiring after 29 years and has no one in the family to take over.
Read this before you enquire
MaterialRevenue going backwards and one client being too much of it are the two things that end most deals in due diligence. Both are shown here up front, from the figures the seller supplied.
- Revenue directionMaterial
Turnover is -19.3% against its 2021 peak.
- 2021: baseline
- 2022 (-3.2%)
- 2023 (-5.8%)
- 2024 (-4.6%)
- 2025 (-2.5%)
- 2026 (-4.9%)
- Peak 2021 to latest 2026: -19.3%
6 years of turnover, 2021 to 2026, as supplied by the seller.
- Client concentrationNot stated
The seller has not declared what share of revenue the largest clients represent.
No declaration supplied. Client concentration cannot be derived from accounts.
EBITDA margin narrowed from 10.8% in 2021 to 9.7% in 2026.
These are observations from the supplied figures, not a view on whether this business is worth buying. Nothing here predicts an outcome.
Computing valuation...
What happens next
Submit an enquiry to the seller. Once they approve it, you sign a non-disclosure agreement and gain access to the information memorandum, the financials and a secure deal room with the seller.