The company currently has six hostels, four Belushi's and two St Christopher pubs. In May the company is to open its first site outside London in the city of Edinburgh. It is converting a hotel next to Waverley station, Edinburgh into a 108-bedroom hostel with two Belushi's bars. It is looking for other sites in York and Bath.
In continental Europe it has plans to open sites in Paris, Barcelona, Amsterdam, Madrid and Rome.
Managing director Keith Knowles said: "This is a very exciting time for us. St Christopher's and Belushi's are truly international brands because they built a reputation around the world."
Interpub's funds were boosted in 1999 by a financing deal backed by Andy Searle and Mark Chitty of the holiday firm Mark Warner and Scottish & Newcastle, plus a new debt facility from the Bank of Scotland.