Starboard Hotels and Bridgepoint Ventures have teamed up to launched a new hostel chain called Hoax, with the first site under the new venture set to open in Liverpool this July.
The group expects to invest more than £100m launching the format in key cities such as London, Bristol and Glasgow, before launching across Europe.
Starboard said it will look to acquire disused retail and office buildings in prime central locations close to a national rail stations.
The first hostel will be a 282-bedroom site in Matthew Street and will feature a Brooklyn-style bar and restaurant on the ground floor.
Eric Jafari, chief executive of Bridgepoint Ventures, said: “During downturns, history has demonstrated that demand for budget accommodation either strengthens or stays the same. We like the hostel sector because it is still in its infancy and has a lot of room for growth.
“Institutional investors have gone to great lengths to improve the quality of the sector but it requires a lot more investment and competition to continue improving the standards.”
