REG - Safestay PLC - Sale of Glasgow Freehold Property for £5.1 million

SafestayAnnouncement

Today 07:00

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RNS Number : 3330G  Safestay PLC  01 June 2026

Safestay plc

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

 

Sale of Glasgow Freehold Property for £5.1 million

 

Safestay (AIM: SSTY), one of Europe's largest hostel groups, announces that it
has exchanged conditional contracts for the sale of its freehold property and
hostel, Safestay Glasgow Charing Cross (the "Property"), to an independent
third-party investor for a cash consideration of £5.1 million (the
"Transaction"). The Transaction is conditional on approval from the Company's
lender, with completion of the sale expected to occur by 28 August 2026.
Following completion, the Group will no longer operate the hostel at this
site, and the property will cease to trade under the Safestay brand.

 

The net proceeds from the Transaction will be used to repay indebtedness, for
working capital purposes, and to strengthen the Group's balance sheet,
supporting the delivery of its long-term strategic growth ambitions. The
Transaction follows the Company's announcement on 17 June 2025, in which
Safestay confirmed that it was considering the conditional sale of certain UK
assets. Since then, the Company has sold and franchised its Edinburgh freehold
property and hostel for £5.4 million and sold and leased back its Brighton
freehold property for £3.1 million.

 

In the 12 months to 31 December 2025, Safestay Glasgow Charing Cross generated
audited revenue of approximately £1.5 million and profit before tax of
approximately £0.4 million. As at 29 May 2026, the book value of the Group's
fixed assets associated with the Property is approximately £5.2 million.
Safestay purchased the Property in October 2019 for £3.2 million and
subsequently invested approximately £0.4 million in preparing and
refurbishing the site ahead of its successful opening. The sale therefore
represents a return of approximately £1.5 million on the Group's investment
in the Property, while resulting in a modest loss of approximately £0.1
million relative to the latest book value.

 

Larry Lipman, Chairman of Safestay, said:

 

"The sale of our freehold property and hostel, Safestay Glasgow Charing Cross,
for £5.1 million is fully aligned with our strategy to crystallise value for
shareholders while supporting sustainable long-term growth. Alongside the
recent successful sales of two freehold sites in Edinburgh and Brighton, this
Transaction will further strengthen the Group's balance sheet and provide
additional flexibility as we continue to deliver our plans to selectively grow
the portfolio and create shareholder value.

 

I would like to thank all members of our team at Safestay Glasgow Charing
Cross for their hard work and commitment throughout our operation of the
property."

 

ENDS

 

Enquiries

 

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

 Larry Lipman

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

 David Coaten/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
(https://protect.checkpoint.com/v2/r02/___http:/www.safestay.com___.YXAxZTpzaG9yZWNhcDpjOm9mZmljZTM2NV9lbWFpbHNfYXR0YWNobWVudDpjMjE2OWJiOTE2NDk4OGM0YzE1NDVjZWEzZjlkZWJlNTo3OjcwZWE6NDJiOGJkYTI2MTkyOGYwMTA3OWZmMjZhMmQ1MWU0MTdiZmFlNGEwYTU2YzJhMzgwNmUwMjdkOTJkMmFlM2E5ODpwOlQ6Tg)

Instagram page www.instagram.com/safestayhostels/
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About Safestay PLC

Safestay
(https://protect.checkpoint.com/v2/r02/___https:/www.safestay.com/___.YXAxZTpzaG9yZWNhcDpjOm9mZmljZTM2NV9lbWFpbHNfYXR0YWNobWVudDphYmIxNDVjMDllYzVlZjgyYjZkMThkZDE1ZGEzZWUyOTo3OjdkZWY6YzEzZGI4ZTQ1M2FiNWQ5MmEzNmYxMmQ2ZTQwNTkxNTliYTRiZTQ4MDJkMDlhZDE3YjAxYzU1Y2ZkMGUyNTIwMjpwOlQ6Tg)
 PLC, one of Europe's largest hostel groups, operates in the exciting and
growing hostel segment of the global hospitality market. Worth approximately
US$6.53bn in 2026, it is estimated to grow to US$15.25bn by 2034 (The Market
Data Forecast, 2025).

 

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.

 

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.

 

Safestay's pan-European locations include:

·    Kitzbühel Alpine, Austria
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Franchise

·    Kitzbühel Centre, Austria
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Franchise

·    Brussels Grand Place, Belgium
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·    Prague Charles Bridge, Czechia
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·    Berlin Kurfurstendamm, Germany
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Hotel
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·    Athens Monastiraki, Greece
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·    Naples, Italy
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·    Pisa Centrale, Italy
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·    Warsaw Old Town, Poland
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·    Lisbon Bairro Alto, Portugal
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·    Bratislava Presidential Palace, Slovakia
(https://protect.checkpoint.com/v2/r02/___https:/www.safestay.com/venue/safestay-bratislava-presidential-palace/___.YXAxZTpzaG9yZWNhcDpjOm9mZmljZTM2NV9lbWFpbHNfYXR0YWNobWVudDphYmIxNDVjMDllYzVlZjgyYjZkMThkZDE1ZGEzZWUyOTo3OjNiMGM6OWJkZTE4MDAxMWU5MjEwMjVlYTBiYzdlMjExNjNkYzYwM2JkNTUzOGU5ZGM5MDZkMjEwYTdkM2E4MDBiZDk4MzpwOlQ6Tg)

·    Barcelona Gothic, Spain
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·    Barcelona Passeig de Gracia, Spain
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·    Calpe Seafront, Spain
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(in development)

·    Córdoba Mezquita Catedral, Spain
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·    Madrid Central, Spain
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·    Brighton, UK
(https://protect.checkpoint.com/v2/r02/___https:/www.safestay.com/venue/brighton-royal-pavilion/___.YXAxZTpzaG9yZWNhcDpjOm9mZmljZTM2NV9lbWFpbHNfYXR0YWNobWVudDpjMjE2OWJiOTE2NDk4OGM0YzE1NDVjZWEzZjlkZWJlNTo3OjBjNGI6NWUxZDQyYmQ4OTJmNWExYzIyMjU4NDg1MTRjYjk3YzFlOGZhOWVhYzYxYjY0NzhjNjgwM2U0YzA4MzM5Nzc2ZTpwOlQ6Tg)

·    Edinburgh Cowgate, UK
(https://protect.checkpoint.com/v2/r02/___https:/www.safestay.com/venue/safestay-edinburgh-cowgate/___.YXAxZTpzaG9yZWNhcDpjOm9mZmljZTM2NV9lbWFpbHNfYXR0YWNobWVudDphYmIxNDVjMDllYzVlZjgyYjZkMThkZDE1ZGEzZWUyOTo3OjBlYTI6YzcxZDliZDFmMjg5OTczYzdiNjE2YjMwNWViYzNhYjdkNjk2Mjg0MTYxYzU4YzM1NDIwZDNmOTBkMWMyZjM0YzpwOlQ6Tg)
Franchise

·    London Elephant & Castle, UK
(https://protect.checkpoint.com/v2/r02/___https:/www.safestay.com/venue/safestay-london-elephant-castle/___.YXAxZTpzaG9yZWNhcDpjOm9mZmljZTM2NV9lbWFpbHNfYXR0YWNobWVudDphYmIxNDVjMDllYzVlZjgyYjZkMThkZDE1ZGEzZWUyOTo3OjAzZjg6ODJlMWJjY2EzMDA4Mzk5YjliMmFiYWU3NDBmNGMzODE4MTU1YzE1ZmYzMWRkYWFlNjE2ZWE4OTkxZmFjMDJjZjpwOlQ6Tg)

·    London Kensington Holland Park, UK
(https://protect.checkpoint.com/v2/r02/___https:/www.safestay.com/venue/safestay-london-kensington-holland-park/___.YXAxZTpzaG9yZWNhcDpjOm9mZmljZTM2NV9lbWFpbHNfYXR0YWNobWVudDphYmIxNDVjMDllYzVlZjgyYjZkMThkZDE1ZGEzZWUyOTo3OmVhZTE6OTUzNTYxN2Q1Yzg4OWMxYzliOTA1YzI2YTIwZDc5OGVmYWJjODk5ODA2OWM4YzI1NzA5ZGJlNWM5YTJlZjYxNTpwOlQ6Tg)

·    York Micklegate, UK
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