Specialist business property adviser, Christie & Co, has agreed to sell two city-centre hostels on behalf of Euro Hostels Limited, one of the UK’s best known and longest established regional hostel portfolios, to YHA as they expand their portfolio across the UK.
In the same family ownership for nearly 20 years, the hostels occupy strategic locations in Liverpool and Newcastle and are set to be integrated with the transfer of staff as the sale of going concerns to the wider YHA business upon completion.
YHA is a registered charity which comprises some 151 hostels and 45 camp sites and has invested over £37m in its hospitality portfolio since 2011.
The Euro Hostels sites benefit from the continued strengthening of their local trading markets and have the advantage of excellent accessibility and proximity to major transport hubs.
James Blake YHA, Chief Executive said, “YHA is delighted that we have been able to acquire these two new hostels in iconic UK cities. We are really excited to be able to welcome them and our new colleagues into our network. Both sites will ensure that thousands of young people will be able to learn, meet new people and improve their wellbeing and life skills as part of our operations in Liverpool and Newcastle. We can’t wait to get started and bookings for both sites are open now. It has been a partnership effort and my thanks go to all parties involved, including our advisors Browne Jacobson.”
Jon Patrick, Head of Leisure & Development at Christie & Co comments, “In the traditional sense, hostels are a type of budget accommodation with dormitories and shared bathrooms and other ancillary facilities. However, rising expectations, lifting of the maximum age for guests and higher spending power have encouraged substantial upgrading of facilities in the sector. This in turn has resulted in hostels also becoming appealing to a more mature and affluent guest base as well as the introduction of new hostel concepts and emerging brands, which now also compete with conventional hotels.
“The sale of these businesses has generated a significant amount of interest from both hostel and hotel operators alike from within the UK and the wider Eurozone. We believe this demonstrates the evolving nature and attractiveness of the hostel/multi-occupancy trading format and demand remains strong for sites in key leisure and education locations. I am delighted YHA will be acquiring these sites to continue its expansion throughout England and Wales.”