LONDON, July 2, 2026, 12:08 (BST)
- Safestay said it has sold its Glasgow Charing Cross freehold for £5.1 million, completing the deal on July 1.
- The deal comes in at around 58% of Safestay’s £8.77 million market cap, set at a 13.50p share price.
- The stock didn’t move by mid-morning, data showed, with just 8 shares changing hands.
- Revenue and EBITDA dropped in FY2025. Cash went up, gross debt came down.
Safestay Plc (LON:SSTY) sold its Glasgow hostel for £5.1 million, cashing in an asset worth over half its current market cap, but the shares barely reacted. The AIM-listed hostel group closed the sale of Safestay Glasgow Charing Cross to an independent investor on July 1, during normal London Stock Exchange hours.
Shares last traded flat at 13.50p as of 10:35 BST on Thursday, with a 12p sell and 15p buy quote. Just 8 shares moved so far, worth around £1.20 at 15p, latest price on the tape. Market cap stood at £8.77 million.
| Safestay tape and asset-sale math | Figure |
|---|---|
| Shares at 10:35 BST, July 2 | 13.50p |
| Bid and offer | 12.00p / 15.00p |
| Volume so far | 8 shares |
| Current market value | £8.77 mln |
| Glasgow completed July 1 | £5.1 mln |
| Glasgow as share of market cap | 58% |
| Proceeds for Edinburgh, Brighton, Glasgow | about £13.6 mln |
The gap isn’t small. Safestay’s latest three UK deals—Edinburgh for £5.4 million, Brighton at £3.1 million, and Glasgow for £5.1 million—come to around £13.6 million total, about 1.5 times what the company’s market cap is now. Shares still trade like a thin, stuck recovery play, not in line with what the property sales might suggest.
Safestay’s Glasgow location brought in around £1.5 million in revenue and £0.4 million in profit before tax over the 12 months to Dec. 31, 2025. The company paid £3.2 million for the site in October 2019, then spent another £0.4 million getting it ready to open. Safestay said it sold the property for about £0.1 million less than the current book value.
Chairman Larry Lipman said at the time of the deal’s announcement it would “further strengthen the Group’s balance sheet.” On July 1, Safestay said net proceeds would go to repaying debt, working capital, and balance sheet improvement. Investegate
The trade hinges on the balance sheet. Safestay posted 2025 gross debt, excluding both lease and property finance liabilities, at £14.1 million, down from £19.5 million in 2024. Cash is up to £2.7 million from £1.4 million. Proceeds from Glasgow are roughly in line with the £5.4 million debt reduction logged for 2025 so far. The company hasn’t confirmed if all the Glasgow cash will pay down debt.
| FY2025 operating check | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue | £20.6 mln | £23.0 mln | -10% |
| Adjusted EBITDA | £3.7 mln | £6.5 mln | -43% |
| Occupancy | 70.0% | 75.2% | -5.2 pts |
| RevPAB | £16.43 | £18.56 | -11% |
| Cash | £2.7 mln | £1.4 mln | +93% |
| Gross debt, excl. leases and property finance | £14.1 mln | £19.5 mln | -28% |
| NAV per share | 22.21p | 43.32p | -49% |
The income statement lays out why shares haven’t tracked the disposal cash. Revenue dropped, adjusted EBITDA was almost cut in half, and occupancy rates decreased. Net asset value per share fell to 22.21p from 43.32p after impairments and selling properties. Safestay posted a £10.1 million loss after tax for 2025, with £6.0 million in non-cash goodwill and fixed-asset write-downs, and a £1.4 million hit from selling assets.
The company said 2026 average bed rates are just above last year’s level, but occupancy slipped as consumer behavior shifted due to the Middle East conflict and new tourist levies in some European spots. It also cited UK business rates, higher employment costs, and VAT changes across Europe.
AIM shares lagged, with the FTSE AIM All-Share down 0.39% at 773.05 by 11:21 BST. Safestay was flat over the week and month, according to ADVFN data, but off 19.4% in six months and down 44.9% over one year.
Safestay said it now has 20 operational sites and one hotel left after selling its Glasgow property. The group’s locations stretch across the UK, Spain, Belgium, Czech Republic, Greece, Italy, Poland, Portugal, Austria, and Slovakia. Investors are watching to see how much of the Glasgow sale proceeds go toward paying down debt, whether Brighton opens in time for summer, and if the move to an asset-light model can fill the gap left by lost freehold income.
