Safestay (AIM:SSTY), the London-listed operator of premium hostels across the UK and mainland Europe, said on Thursday that the sale of its leasehold interest in Safestay London Kensington Holland Park to Acerhawk has completed for a cash consideration of £3 million.
The Group no longer operates the hostel at the site, which has ceased to trade under the Safestay brand.
The sale follows the exchange of contracts announced on 5 August and forms part of Safestay's wider push to crystallise value from UK assets to fund an asset-light growth strategy.
Net proceeds will go toward repaying debt, working capital and strengthening the balance sheet.
The Holland Park leasehold, which ran until 2065, generated audited revenue of approximately £1.7 million and profit before tax of approximately £87,000 in the 12 months to 31 December 2025.
The disposal follows the £5.1 million sale of Safestay Glasgow Charing Cross, which completed in the summer, proceeds from which the company used in part to repay £3 million of bank debt on 1 July.