Safestay considers further property sales as winter liquidity pressure persists

Safestay ($SSTY) is considering additional property disposals and changes to its financing arrangements as it faces pressure on cash resources through the winter. The hostel operator said year-to-date trading remained below its original expectations, although recent performance had improved. Bank borrowings fell to £9.1 million from £13.6 million at June-end, helped by proceeds from properties sold in Glasgow and Holland Park.

The debt reduction has not removed the need to fund working capital during seasonally quieter months and into 2027. Potential disposal proceeds would support liquidity and, where appropriate, investment in the hostel estate. Management is also reviewing overhead and operating costs, with a head-office move expected to generate savings. Further sales or financing have not been agreed, and the company cautioned that their timing and outcome remain uncertain.

Sources:

• RNS via London South East
• RNS via Investegate