Safestay has widened its H1 pretax loss to £0.6m, from a loss of £0.2m. Revenue was £3.3m, from £1.4m.
Chairman Larry Lipman said:
"The business is progressing well, like-for-like revenues and margins are improving and we have now successfully put in place the systems and infrastructure to support multiple hostels as part of our growth planning.
"We are building a premium hostel brand and are gratified that our customer feedback shows the increasing understanding of Safestay's premium positioning.
"Notwithstanding the current trading headwinds impacting the London market, and more directly Holland Park, the Board remain confident in our outlook with 2016 full-year EBITDA projected to be at the lower end of our expectations.
"We continue to see opportunity for expansion and to seek new sites amongst the principal western gateway cities of Europe."