- Hostel group Safestay said it was cutting costs as the spread of the coronavirus lowered bookings across its hostel network.

'We have experienced a material reduction in new bookings over the last week against our expectations and there have been a growing number of group bookings from schools and colleges which have been cancelled or postponed,' the company said in a trading update.

Safestay said it was too early to say what the full impact from COVID-19 might be in the current financial year.

It reiterated that it completed a 'successful year' in 2019 and entered 2020 in a strong financial position.

'The board is confident that the business is well placed to weather the current challenges and return to growth as and when the travel market normalises,' Safestay said.

'In the meantime, the company is reducing flexible costs where possible to offset the dip in bookings whilst strictly adhering to all health advice in order to help protect all of our staff and guests.'

At 8:53am: [LON:SSTY] Safestay Plc share price was -3.5p at 16.5p

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