REG - Safestay PLC - Sale and Leaseback of Brighton Freehold Property

SafestayAnnouncement

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RNS Number : 8046I  Safestay PLC  25 November 2025

Safestay plc

("Safestay", the "Company" or the "Group")

 

Sale and Leaseback of Brighton Freehold Property

 

Safestay (AIM: SSTY), one of Europe's largest hostel groups, announces that it
has exchanged conditional contracts for the sale and leaseback of its freehold
property in Brighton (the "Property") to a private investor for a cash
consideration of £3.125 million (the "Transaction"). The contracts are
conditional on certain approvals being obtained from the Company's bank, with
completion of the sale expected before 15 January 2026.

The net proceeds from the Transaction will be used to repay indebtedness,
provide working capital and strengthen the Group's balance sheet, supporting
the delivery of its long-term growth ambitions.

 

The Transaction follows Safestay's announcement on 17 June 2025 that it was
considering the conditional sale of certain UK freehold assets and the recent
announcement of the sale and subsequent franchising of its freehold property
and hostel, Safestay Edinburgh Cowgate, for a cash consideration of £5.35
million, which is due to complete on 1 December 2025.

 

The Group acquired the Property in June 2024 for £2.275 million and, in April
2025, received planning approval to develop a 170-bed hostel. As at 30 June
2025, the unaudited book value of the Property was approximately £2.4
million.

 

Under the 15-year leaseback agreement, Safestay will benefit from a six-month
rent-free period as it continues its previously announced £1.0 million
investment in converting the Property so that the hostel may open as planned
in summer 2026. After the rent-free period, Safestay will pay approximately
£300,000 per year in rent.

 

Set over five storeys, the Property is an attractive Grade II listed,
Regency-style end of terrace 15,300 sq. ft. building on Pavilion Parade. It is
ideally situated in the centre of Brighton, 600 metres from the seafront and
opposite the Royal Pavilion, a former regency palace and one of Brighton's
most popular tourist destinations.

 

Larry Lipman, Chairman of Safestay, said:

"The sale and leaseback of our Brighton freehold property for £3.125
 million is fully aligned with our strategy to crystallise value for
shareholders while supporting sustainable long-term growth. Alongside the
recent successful sale and franchising of our Edinburgh freehold, this
Transaction will further strengthen our balance sheet and provide additional
flexibility as we continue to deliver our plans to create shareholder value.

 

Work is well underway to convert the Property into a fantastic, 170-bed hostel
ahead of opening next summer. Once operational, the site will create
approximately 20 new jobs in the area as well as making a significant
contribution to the local economy by enabling potentially thousands more
visitors a week to stay in one of Brighton's most vibrant and commercial
areas."

 

ENDS

 

Enquiries

 

 Safestay PLC                         Tel: +44 (0) 20 8815 1600

 Larry Lipman

 Shore Capital (Nomad & Broker)       Tel: +44 (0) 20 7408 4090

 Tom Griffiths/Harry Davies-Ball

 Hudson Sandler (Financial PR)        Tel: +44 (0) 20 7796 4133

 Alex Brennan/India Laidlaw           safestay@hudsonsandler.com

 

For more information visit our:

 

Website www.safestay.com (http://www.safestay.com)

Instagram page www.instagram.com/safestayhostels/
(http://www.instagram.com/safestayhostels/)

 

About Safestay PLC

Safestay (http://www.safestay.com)  PLC is one of Europe's largest hostel
groups, operating in the fragmented and fast-growing global hostel market that
is expected to be worth $8.9bn annually by 2027*.

 

Safestay's operational sites of 21 premium hostels and one hotel offer guests
both private and shared rooms in destination cities across the UK, Spain,
Belgium, Czech Republic, Germany, Greece, Italy, Poland, Portugal, Austria and
Slovakia.

 

In 2025, the Group delivered a 1% increase in Total Bed Nights to 415,606,
40.5% of which were booked through direct and non-commissionable channels.

 

Safestay's mission at each of its locations is to provide a safe, inclusive,
and enjoyable space that caters to the needs of different travellers. Its
properties offer first-class locations and thoughtful designs that cater for
the different needs of travellers, from digital nomads to backpackers and from
families to group travellers.

 

https://www.safestay.com/ (http://www.safestay.com)

 

*Source - Markets and Research, August 2025

 

Safestay's pan-European locations include:

 

·    Athens Monastiraki, Greece
(http://www.safestay.com/venue/safestay-athens-monastiraki/)

·    Barcelona Gothic, Spain
(http://www.safestay.com/venue/barcelona-gothic/)

·    Barcelona Passeig de Gracia, Spain
(http://www.safestay.com/venue/safestay-barcelona-passeig-de-gracia/)

·    Berlin Kurfurstendamm, Germany (hotel)
(http://www.safestay.com/venue/safestay-berlin-kurfurstendamm/)

·    Bratislava Presidential Palace, Slovakia
(http://www.safestay.com/venue/safestay-bratislava-presidential-palace/)

·    Brighton, UK (in development)

·    Brussels Grand Place, Belgium
(http://www.safestay.com/venue/safestay-brussels-grand-place/)

·    Budapest, Hungary (in development)

·    Calpe Seafront, Spain (in development)
(http://www.safestay.com/venue/safestay-calpe-seafront-costa-blanca/)

·    Córdoba Mezquita Catedral, Spain
(http://www.safestay.com/venue/safestay-cordoba-mezquita-catedral/)

·    Glasgow Charing Cross, UK
(http://www.safestay.com/venue/safestay-glasgow-charing-cross/)

·    Edinburgh Cowgate, UK
(http://www.safestay.com/venue/safestay-edinburgh-cowgate/)

·    Kitzbühel, Austria

·    London Elephant & Castle, UK
(http://www.safestay.com/venue/safestay-london-elephant-castle/)

·    London Kensington Holland Park, UK
(http://www.safestay.com/venue/safestay-london-kensington-holland-park/)

·    Lisbon Bairro Alto, Portugal
(http://www.safestay.com/venue/safestay-lisbon-bairro-alto/)

·    Madrid Central, Spain
(http://www.safestay.com/venue/safestay-madrid-central/)

·    Naples, Italy (in development)

·    Pisa Centrale, Italy
(http://www.safestay.com/venue/safestay-pisa-centrale/)

·    Prague Charles Bridge, Czeck Republic
(http://www.safestay.com/venue/safestay-prague-charles-bridge/)

·    Warsaw Old Town, Poland
(http://www.safestay.com/venue/safestay-warsaw-old-town/)

·    York Micklegate, UK
(http://www.safestay.com/venue/safestay-york-micklegate/)

 

 

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