Safestay, the hostel operator, said year-to-date trading remains below the board's original expectations and that its liquidity is under pressure over the winter.
Summer trading was weaker than management had anticipated, as flagged in the interim results.
More recent trading has improved, the company said, after revenue management and other operational changes by its recently appointed chief operating officer.
Cash flow is typically challenging in the fourth and first quarters, and the board is evaluating measures to manage working capital through the winter and into 2027.
Bank borrowings have fallen to £9.1 million at 23 October from £13.6 million at 30 June.
A substantial share of the proceeds from selling the Glasgow property went on debt reduction, along with part of the proceeds from Holland Park.
The board is exploring further property disposals and a review of its financing arrangements.
Any proceeds would support working capital, maintain liquidity headroom and, where appropriate, fund investment in the hostel portfolio.
Safestay cautioned that there is no certainty over the timing or outcome of any disposals or financing changes.
Refurbishment of the Brussels hostel is nearing completion, while work at Lisbon has started, with the aim of improving the estate before next summer's peak season.
The head office will move to the group's Elephant & Castle hostel in November, which should cut costs.
The board is also reviewing wider head office and operational spending.
Paul Cummins, executive chairman, said the board remains focused on ensuring the group has enough liquidity to meet its obligations.
Safestay operates 19 hostels and one hotel across the UK and nine other European countries.
The board will provide a further update in due course.
