UK property investment company MCR Property Group is extending its interests in London, buying a historic building in the city from which to build a new hostel brand.

The Holland Park property was acquired from hostel group Safestay, which previously held the long leasehold at the site. It has accommodation in three buildings, one being the east wing of the park’s original Jacobean property, dating back to 1605, which has been listed as a significant historic property. A more modern block dates from extensions added in the 1950s. Guests can choose from a mix of standard, ensuite or group rooms, ideal for families.

Plans for a New Hostel Brand

MCR paid GBP3 million for the long leasehold interest, and now plans a refurbishment and repositioning of the property. The company said: “MCR is repositioning the property under LOOP London, a brand created around the idea ‘Stay in the loop’. The ambition is to combine thoughtful design, a strong social atmosphere and good-value accommodation that helps guests feel connected to the city.”

For MCR, managing the property will be a straightforward additional workload for its existing London hospitality team. They already manage The Kensington Collection, a mix of hotel rooms and serviced apartments in properties across Kensington, Knightsbridge and Belgravia, which MCR launched in the middle of 2026.

The group says its model is to “acquire well-located assets, bring strategy and delivery capability in-house, invest quickly and build operating platforms that can grow beyond a single property.”

For Safestay, the disposal was the latest in a series of moves designed to take the brand towards a more asset light approach, rather than owning its own hostel properties. In June 2026, it sold its hostel in Glasgow for GBP5.1 million, and it has also reported it will close a hostel in Berlin at the expiry of its contract at the end of 2026.

The launch of Loop comes as development activity in the UK hostel market has slowed. Just one recent opening has seen hybrid operator Meininger launch its Edinburgh Haymarket hostel. The 157 room property was created by converting an office block in the centre of the Scottish city. In London, hostel group a&o recently took over a former Hilton hotel, to create its first site in the UK capital.

London Leads in Hospitality Innovations

One other innovator in London currently building its portfolio is Zedwell. The compact hotel offering makes a virtue of building rooms with no windows, enabling it to convert a wider range of properties. One current project involves the conversion of a former bank office in the City of London to create a 304 room hotel.

In London, there is also the similarly named MCR Development active in the hotel sector. Based in the US, MCR Development is currently progressing plans to repurpose the iconic BT Tower as a hotel. Once complete, this will be a landmark destination on the capital’s skyline.