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Safestay has exchanged conditional contracts to sell its Glasgow Charing Cross hostel to an independent investor for £5.1m in cash.
The transaction requires approval from the lender of the company, with completion expected by 28 August 2026. Safestay said it will stop operating the freehold property and the site will cease trading under the brand.
According to the group, net proceeds will repay debt, fund working capital, and strengthen the balance sheet of the group to support long-term growth.
It comes as the group last year confirmed it was considering selling certain UK assets.
Safestay has since sold and franchised its Edinburgh hostel for £5.4m, and completed a £3.1m sale and leaseback of its Brighton property.
In the 12 months to 31 December 2025, the Glasgow hostel generated audited revenue of £1.5m and a £0.4m profit before tax.
The company bought the property in October 2019 for £3.2m and spent £0.4m on refurbishment. The sale represents a £1.5m return on the investment, but a £0.1m loss against book value.
Chairman Larry Lipman 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.”
He added: “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.”
